Berkshire Hathaway Bets Big on AI-Powered Giants Apple, Alphabet, and Coca-Cola

Berkshire Hathaway has significantly increased its investment in three AI-powered companies: Apple, Alphabet (Google's parent company), and Coca-Cola. According to a recent review of Berkshire's largest positions, these three companies now account for 41.7% of the conglomerate's $357 billion stock portfolio.

Apple remains the largest position at 21.7%, followed by Alphabet at 10.2% and Coca-Cola at 9.8%. The increase in Alphabet's stake is particularly notable, with Berkshire expanding its holding sixfold this year under new CEO Greg Abel.

Abel has stated that Berkshire's own companies have given the conglomerate a close view of how AI pays off, and he sees Google as 'a significant player'. Analyst Anthony Di Pizio notes that Apple's huge base of active devices puts it in a strong position in consumer AI, while Alphabet's Google Cloud revenue jumped 82% year over year in the second quarter.

The conglomerate's investment in these companies is a departure from Warren Buffett's approach, who never chased 'hot tech names'. However, Abel has been quick to capitalize on opportunities in the space, expanding Berkshire's position in Alphabet by 224% in the first quarter and adding another 48.1 million shares in the second quarter.