Berkshire Hathaway Bets Big on AI with $100 Billion in Alphabet and Apple
Berkshire Hathaway's stock portfolio has a significant exposure to artificial intelligence (AI) stocks, with 31% of its holdings invested in two key companies.
The largest purchase under Greg Abel's era is Alphabet, parent company of Google, which Berkshire bought nearly 106 million shares of. This investment increased Alphabet's share in the portfolio from 0% to just under 10% in less than a year. With staggering capital expenditures, Alphabet may seem like a cause for concern, but its revenue growth and free cash flow suggest it's a good value.
The other major AI holding is Apple, which makes up over 20% of the portfolio. While Apple's price-to-earnings ratio is high at 38 times earnings, Berkshire has historically been a long-term holder of Apple stock. The company's position in Alphabet and Apple gives it exposure to the growing AI market while providing a relatively stable investment.