Public information shows that Buffett started buying Apple stocks in the first quarter of 2016. When the annual financial report for October 2015 was released, Apple's net profit was $53.3 billion, with a profit per share of $9.22. At the beginning of January 2016, the stock price was $96, corresponding to a P/E ratio of 10.4. In 2020, Apple had a 1:4 stock split, so the above data is equivalent to a current stock price of $24 and a profit per share of $2.30. In the annual financial report for October 2024, Apple's profit was $93.7 billion, less than twice that of 2015, but due to long-term stock buybacks, the number of outstanding shares decreased, resulting in a profit per share of $6.08, 2.6 times that of 2015. However, at the beginning of 2025, Apple's stock price was $243, with a P/E ratio close to 40 times! This example shows that the core rise in Apple's stock price over the past nine years is the high market expectations (P/E ratio from 10 times in 2016 to 40 times in 2025), followed by the rise in profits (1.75 times), and the stock buybacks. Those who buy Apple stocks at $243, if the future expectations become pessimistic, with a 25% compression in P/E ratio (from 40 times to 30 times), will still encounter a stock price decline even if profits rise by 20%.