Warren Buffett Explains Why You Probably Wouldn't Sell Your iPhone If Someone Offered You $10K

Billionaire Warren Buffett is one of the greatest stock pickers of all time. The Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) chairman and CEO is heavily invested in Apple Inc AAPL, and it might be because Apple has something almost no other company does.

What To Know: Apple makes up approximately 46% of the Berkshire portfolio. The Buffett-led firm's next largest holding has about a 9% weighting, making its Apple position more than five times bigger than anything else in the portfolio. 

Buffett posed an interesting thought experiment earlier this year on CNBC's "Squawk Box."

If you are an Apple user and somebody offers you $10,000 to get rid of your iPhone and never buy one again, you wouldn't do it, Buffett said, suggesting the product is far too superior to competing products to give up. 

On the other hand, if someone makes the same proposition to get rid of your Ford Motor Co F vehicle and never buy one again, you would take the $10,000 and go buy a General Motors Co GM vehicle, he said. 

"It's an incredibly valuable utility," Buffett said.

The company is incredibly well run, he said, adding that CEO Tim Cook is "one of the classiest" leaders and one of "the greatest managers" in history, adding he really understands the business.

"We can't develop a business like that so we own a lot of it," Buffett said. 

Check This Out: Here's How Much Warren Buffett Makes In Apple Dividends Annually

According to Berkshire's latest regulatory filing, the firm owns more than 915 million shares of Apple, giving Berkshire close to a 6% stake in the iPhone maker. Buffett suggested he has no plans to sell any shares anytime soon. He sold shares around $115 for tax purposes and he called that a "dumb sale."

"We'll never own [another] business that makes so many people happier," Buffett said.

Check This Out: What's Next for Berkshire Hathaway After Warren Buffett? Greg Abel Weighs In

AAPL Price Action: Apple has a 52-week high of $198.23 and a 52-week low of $124.17, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.

Some elements of this story were previously reported by Benzinga and it has been updated.