Berkshire Hathaway Digs In on Apple and Alphabet as AI Wave Continues

Greg Abel, the successor to Warren Buffett as CEO of Berkshire Hathaway, has maintained the conglomerate's investing philosophy since taking over. One key aspect is a significant investment in two artificial intelligence (AI) stocks: Apple and Alphabet. The combined holdings make up approximately 34.7% of Berkshire Hathaway's portfolio.

Apple accounts for 22.04% of the portfolio, a position that has been steady despite some trimming by Berkshire Hathaway in recent years. Buffett once praised Apple as 'probably the best business in the world,' citing its consistent earnings and cash flows due to popular devices like the iPhone. The company's loyal customer base is another strength, with high switching costs making it difficult for users to switch to competitors.

The integration of AI features into Apple's devices could further increase renewal rates and attract new customers. With over 2.5 billion active devices in circulation, Apple can distribute AI services rapidly through software updates, allowing for adjustments based on user interaction data.

Berkshire Hathaway first invested in Alphabet in the third quarter of 2025, with Buffett behind the decision. The conglomerate has since doubled down on its stake, increasing it substantially during the second quarter. Alphabet's revenue and earnings growth have been impressive, particularly in cloud computing, where the company is a strong player.