Apple (AAPL, Financial) reported better growth than investors were expecting, as the Company’s foreign-exchange-neutral revenues in China recovered to positive growth. Apple’s shares finished substantially higher for the year, driven by earnings multiple expansion we believe to be related to expectations for the Company’s upcoming next-generation 5G product cycle. We trimmed our outsized Apple positions in order to fund new portfolio holdings, bringing our weighting to around 9%. Remarkably, the Russell 1000 Growth Index consists of over 500 holdings yet carries a weighting in Apple at over 8.5% (and about 4.5% in the S&P 500).
From David Rolfe (Trades, Portfolio)'s Wedgewood Funds fourth-quarter 2019 shareholder letter.
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