Warren Buffett Said Apple CEO Tim Cook Has Made Berkshire Hathaway More Money Than He Has: Was He Right?

Warren Buffett did something he usually doesn't do at Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) latest annual shareholder meeting. And I'm not talking about announcing he was stepping down as CEO.

The legendary investor singled out Apple (NASDAQ: AAPL) CEO Tim Cook in the audience. Buffett said, "I'm somewhat embarrassed to say that Tim Cook has made Berkshire a lot more money than I've ever made Berkshire Hathaway."

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There's no question that Cook and Apple have generated significant returns for Berkshire. But was Buffett's statement right?

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Buffett's high regard for Tim Cook

Buffett mentioned that he knew Apple co-founder and longtime CEO Steve Jobs "briefly." He noted that Jobs "did things that nobody else could have done in developing Apple." I doubt anyone would challenge Buffett on that statement, considering that Apple launched innovations including the Mac, iPod, iPhone, and iPad under Jobs' leadership.

But the "Oracle of Omaha" was especially impressed with Jobs' selection of Cook to take the baton leading Apple. He told Berkshire shareholders at their recent annual meeting, "Steve picked Tim to succeed him, and he really made the right decision." Buffett added, "Steve died young, as you know, and nobody but Steve could have created Apple, but nobody but Tim could have developed it as he has."

Notably, Buffett never invested in Apple when Jobs was at the helm. Berkshire first initiated a stake in the consumer technology giant in early 2016. Cook had been CEO for over four years at the time.

Buffett has sung Cook's praise in the past, too. In his 2021 letter to Berkshire shareholders, he wrote, "Tim Cook, Apple's brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim's managerial touch as well."

How much money Cook and Apple have made for Berkshire

Just how much money has Apple made for Berkshire Hathaway under Cook's leadership? Calculating the amount isn't as easy as it might seem because of the conglomerate's multiple purchases and sales through the years.

Berkshire built a huge position in Apple between the first quarter of 2016 and the third quarter of 2018. It sold some shares in the fourth quarter of 2018 and during both 2019 and 2020. The conglomerate resumed purchasing Apple stock in 2022, but began reducing its stake significantly in late 2023 and throughout 2024.

The cost basis for Berkshire's investments in Apple through 2022 was around $34. Buffett's sales of the stock in 2023 and 2024 likely generated a total gain in the ballpark of $97 billion. The exact number can't be determined because we don't know the specific prices at which the shares were sold.

In addition to the roughly $97 billion made from sales of Apple shares, we also need to include the unrealized gain from the Apple stock Berkshire still owns. As of Dec. 31, 2024, Berkshire held 300 million Apple shares. With Apple trading at close to $209 per share, this translates to an unrealized gain of around $52.5 billion. Therefore, the total amount Cook and Apple have made for Berkshire from share appreciation is almost $150 billion.

However, we haven't factored in dividends yet. Again, it's difficult to know the exact amount Berkshire has made from Apple's dividends. Based on my calculations, though, Apple has generated dividend income for Berkshire of between $5 billion and $6 billion. This brings the total amount of money Apple has made for Berkshire to around $155 billion.

An appreciative exaggeration

So was Buffett right that Cook has made more money for Berkshire than Buffett himself has? Nope. Buffett paid between $7.50 and $11.375 per share for Berkshire Hathaway to take control of the company. Today, Berkshire's Class A shares are worth $767,000 each.

The bottom line is nearly all of Berkshire's current market cap of $1.1 trillion has been created under Buffett's leadership. Cook and Apple have certainly made Berkshire a lot of money, but Buffett has unquestionably made the company even more. His comment about Cook appears to be an appreciative exaggeration.

However, there's more story to be told. With Buffett handing over the reins to Greg Abel and Cook continuing to lead Apple, it's possible that over the long term, Cook and Apple might one day make more money for Berkshire shareholders than Buffett did at the helm.

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Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.