Berkshire Hathaway Maintains AI Bet with Apple and Alphabet

Greg Abel, the successor to Warren Buffett as CEO of Berkshire Hathaway, has maintained his predecessor's investing philosophy. One key aspect of this approach is a significant investment in two artificial intelligence (AI) stocks: Apple and Alphabet.

The conglomerate owns these two stocks, which make up a combined 34.7% of its portfolio. This is a testament to Buffett's continued influence on the company's investment decisions.

Apple accounts for 22.04% of Berkshire Hathaway's portfolio, making it the largest holding. Buffett has previously 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 iPhone acts as a subscription service, with customers renewing every few years. This loyalty, combined with high switching costs, gives Apple a significant moat. The company also has growth opportunities through AI features integrated into its devices and a high-margin services segment.

Alphabet accounts for 12.62% of Berkshire Hathaway's portfolio, which the conglomerate first initiated in the third quarter of 2025. Buffett was behind this decision, and since then, Berkshire Hathaway has doubled down on Alphabet. The company's AI business is contributing meaningfully to Google Cloud's strength, with a cloud backlog of $514 billion at the end of the second quarter.