Warren Buffett and Berkshire Hathaway have one stock that's clearly their favorite (and it's not even close). Apple (NASDAQ: AAPL) makes up nearly 48% of Berkshire Hathaway's portfolio, with a stake worth nearly $180 billion.

That's an extreme concentration, and Buffett is OK with that. He's often stated that diversification doesn't make sense if you know what you're doing. But with the direction that Apple is heading, this concentration may bite Berkshire in 2024 -- and Apple may be a stock for potential investors to avoid now.

Berkshire's first purchase of Apple stock was in the first quarter of 2016. At that time, the iPhone 6 was the latest model, which was already quite popular among consumers.

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Source Fool.com