Abel Doubles Down on Tech with $196B Bet on Apple, Alphabet

Greg Abel, Warren Buffett's successor at Berkshire Hathaway, has maintained a highly concentrated portfolio since taking over in December. As of now, he has invested 55% ($196 billion) of the company's $360 billion assets in just four standout stocks.

The top holdings are Apple (AAPL), American Express (AXP), Alphabet (GOOGL)(GOOG), and Coca-Cola (KO). Apple is still Berkshire's largest holding, but Alphabet has become a new focus for Abel. He has grown his stake in Alphabet to nearly $37 billion, largely due to the company's artificial intelligence ties and its integration of AI into Google Cloud.

Abel's optimism about Alphabet centers on its exceptional ad pricing power, which is driven by Google's dominance in internet search traffic (over 91% globally). Additionally, Alphabet's cloud infrastructure services platform has seen significant growth, with a ~$99B run rate growing 82% year-over-year.

Berkshire Hathaway also holds legacy assets that deliver strong dividends. Coca-Cola and American Express have been continuously held by Berkshire since 1988 and 1991, respectively. These companies possess competitive advantages that have boosted their operating results over time.