Berkshire Hathaway Bets Big on Apple and Alphabet

Berkshire Hathaway's investment strategy under Greg Abel is shifting towards technology, specifically artificial intelligence (AI) stocks. As of September 16th, a significant portion of its $365 billion public equities portfolio is invested in two AI companies: Apple and Alphabet.

The conglomerate's stake in Apple accounts for 30.7% of its portfolio, making it the largest holding after trimming the position in recent years. This investment decision, initially made by Warren Buffett in 2016, has proven to be lucrative, with Apple surging more than 1,000% over the past decade.

Apple's devices are the primary method for accessing digital lives, giving the company a powerful distribution advantage. The iPhone remains a dominant product line, with demand remaining robust and sales growth last quarter reaching 21.7%. Additionally, Apple has recently launched Siri AI, offering new capabilities that can help users get more done.

Berkshire Hathaway also holds a significant stake in Alphabet, accounting for 10% of its portfolio. Since purchasing shares in the third quarter of last year, the conglomerate has increased its stake, and Alphabet's valuation is significantly cheaper than Apple's at a forward price-to-earnings ratio of 22.4.