You've no doubt seen quite a bit of excitement over the potential of the metaverse. Tech giants such as Nvidia are investing heavily in the virtual world concept. Facebook even changed its name to Meta Platforms to reflect its metaverse aspirations.
But there's one legendary investor who has been very quiet about the metaverse. Warren Buffett hasn't exactly been a fan of many tech stocks in the past. Unsurprisingly, the multibillionaire CEO of Berkshire Hathaway (BRK.A 1.05%) (BRK.B 1.02%) hasn't publicly hopped aboard the metaverse bandwagon.
However, don't think for a second that Buffett wouldn't like to profit if the metaverse takes off as many expect it will. And he already has a dog in the hunt. Here's Buffett's favorite metaverse stock by far.
Image source: The Motley Fool.
The apple of Buffett's eye
There are actually several stocks that Buffett likes which could win in the metaverse. Berkshire scooped up shares of Activision Blizzard in the fourth quarter of 2021. Microsoft announced plans last month to acquire the gaming company, stating that the deal would help "provide building blocks for the metaverse."
Berkshire also owns a sizable stake in Chinese battery and electric vehicle maker BYD. The company recently applied for the trademark "BYD Metaverse." It remains to be seen, though, what moves -- if any -- BYD will make in the virtual world.
However, Buffett's favorite metaverse stock is, quite literally, the apple of his eye. Apple (AAPL -0.11%) ranks by far as the biggest holding in Berkshire's equity portfolio. Buffett has even stated in the past that Apple is "probably the best business I know in the world."
Missing out on the metaverse?
But should Apple really be viewed as a metaverse stock? After all, the company didn't join in the metaverse frenzy last year. As recently as last month, you could readily find articles discussing how Apple didn't have major metaverse plans.
Apple CEO Tim Cook set the record straight, though, with his comments in the company's fiscal 2022 fourth-quarter conference call. Cook was asked about Apple's potential role in the metaverse. He replied that the company is "in the business of innovation" and is "always exploring new and emerging technologies."
Cook noted that there are more than 14,000 augmented reality (AR) kit apps in Apple's App Store. He added, "We see a lot of potential in this space and are investing accordingly." Investors especially liked the last two words in that statement.
It shouldn't be surprising in the least that Apple does indeed plan to be a player in the metaverse. The company has consistently been a top innovator in consumer technology. Apple is reportedly developing an AR/virtual reality headset and AR glasses. The metaverse potential for these devices is huge -- even if Apple might not hype it up very much. And Apple should have even more metaverse-related opportunities.
This giant should keep growing
The metaverse is only one possible growth driver for Apple. The global smartphone market continues to expand. Increased availability of 5G offers a strong tailwind for Apple on this front.
Apple is also reportedly developing a self-driving car. Morgan Stanley analyst Katy Huberty thinks that Apple could double its revenue if it jumps into the self-driving electric car market.
Warren Buffett might remain quiet about the metaverse. But the performance of his stake in Apple could do all the talking that's needed. This tech giant should grow a lot bigger over the next decade and beyond.
