Berkshire Hathaway Dives into AI Stocks under New CEO Greg Abel

Greg Abel, the successor of Warren Buffett as CEO of Berkshire Hathaway, has overhauled the company's portfolio in his first year at the helm. The overhaul is most notable in the technology sector, where Berkshire now holds approximately 30% of its invested assets.

The two preeminent artificial intelligence (AI) stocks that make up this significant portion of the portfolio are Apple and Alphabet, each holding around $71 billion and $36 billion worth of shares respectively. Apple is Berkshire's largest position, with a 19.8% stake in the company's invested assets.

Alphabet, on the other hand, has seen a surge in investment from Abel, with roughly $17 billion spent purchasing shares in the second quarter. This marks a significant shift from Warren Buffett's focus on Apple, which was once Berkshire's largest position for many years.

The AI operations of Alphabet are expected to drive the bulk of its operating cash flow growth going forward, with sales surging 82% in the second quarter and annual run rate sales now topping $99 billion. This has clearly caught Abel's attention, as he continues to focus on tech-oriented investments for Berkshire.