Apple's Margins, Valuation Highs, and Berkshire's $15 Billion Tax Bill

Apple Inc. has seen a significant evolution in its business model, with high-margin service revenue becoming a larger part of its operations. This shift has contributed to Apple's gross profit margins nearing all-time highs. Valuation multiples for Apple are also at elevated levels, with the current 8.6x trailing revenues placing it in the 99th percentile relative to the company's 10-year and 20-year history. Apple can trade at record sales multiples due to its unique position as a utility-like company. Additionally, Berkshire Hathaway may face a substantial tax bill of $15 billion if it decides to sell its holdings in Apple stock, according to Barron's.