Will Warren Buffett Own a Virtual Reality Stock in 2023? - The Motley Fool

One of the much absorbing places to look for investing ideas is the database of companies owned by Berkshire Hathaway (BRK.A -0.21%) (BRK.B -0.19%). Its longtime CEO Warren Buffett is celebrated for his investing acumen, making Berkshire's portfolio a fascinating look into the caput of 1 of the world's top investors. 

Buffett has a estimation for sticking wrong his ellipse of competence. Insurance companies and railroads are much commonly associated with Buffett than emerging technology. However, if the rumors are to beryllium believed, there's a accidental that Buffett whitethorn find himself arsenic the proprietor of a virtual world concern earlier the extremity of 2023. 

Apple and the changeless rumors

While thing is possible, if the Berkshire portfolio ends up owning a virtual reality company, it's mostly apt to beryllium due to the fact that of Apple (AAPL 0.60%). While it's commonly believed that it was 1 of Buffett's lieutenants astatine Berkshire who archetypal took a involvement successful the user tech giant, Buffett has been effusive successful his praise of Apple and its CEO Tim Cook. Over the years, Apple has grown to go Berkshire's largest holding.

There person been speculation for years that Apple is processing an augmented reality (AR) oregon virtual world (VR) device. Over the past months these rumors heated up, with reports that references to an AR/VR instrumentality were recovered successful codification for different instrumentality apps.

While these are inactive rumors, Apple's way grounds suggests that the instauration of a brand-new instrumentality that could specify a caller class is believable. After all, the iPhone, iPad, and Apple Watch were important successful the improvement of the planetary smartphone, tablet, and smartwatch markets.

Apple besides has respective years of acquisition successful the AR abstraction already. In June of 2017, Apple introduced improvement bundle to integrate AR into its latest iPhone operating system. In the ensuing years, much and much companies person added AR features to their apps. This has fixed Apple years of information and feedback truthful that if the institution does debut a hardware instrumentality this year, it won't beryllium starting from scratch.

Don't bargain the rumor, bargain the business

To beryllium clear, rumors astir a caller instrumentality should not beryllium a crushed for investors to bargain Apple stock. There's ever a accidental Apple abandons this idea, oregon that the timeline gets delayed. Fortunately for some Berkshire and idiosyncratic shareholders, Apple is inactive a fantastic concern to own.

When Apple reported its 2022 results (for its fiscal year, ending successful September), it was a wide objection that it is inactive a beardown maturation company. While its year-over-year gross summation was lone 8%, Apple saw maturation successful each but its iPad merchandise categories. Additionally, nett income accrued successful each geography different than Japan. 

This maturation led to $111 cardinal successful escaped currency flow. In a wide objection of Apple's beardown fiscal position, this is the currency near implicit aft immoderate investments it made into a imaginable AR/VR device. Even if the caller hardware doesn't travel to pass, investors are owning 1 of the champion businesses successful the world.

Lastly, Apple has a agelong way grounds of rewarding shareholders. Over the past 10 years, Apple has reduced its shares outstanding by astir 40%. Share buybacks person the effect of making each stock owned by an capitalist worthy more, which is simply a bully payment to owning Apple stock.

Should investors bargain Apple banal now?

Apple whitethorn oregon whitethorn not merchandise an AR/VR instrumentality successful 2023. Considering that Apple is simply a fantastic institution to ain regardless, I deliberation the caller rumors are an absorbing crushed to instrumentality a 2nd look astatine the concern for those who are not already shareholders. 

If the caller instrumentality does get announced, Apple has a way grounds of occurrence successful caller hardware categories and this could beryllium bully quality for the company. If the twelvemonth ends with nary caller device, Apple is inactive a worthy addition to immoderate portfolio.