Berkshire Hathaway Weighs Apple vs Alphabet in AI Investing Dilemma
Warren Buffett's successor has invested billions in Apple and Alphabet, but which one is the better buy? The conglomerate's biggest holding is Apple, worth around $66 billion, while Alphabet makes up about $37.8 billion of Berkshire Hathaway's assets.
Both companies are taking distinct approaches to AI, with Alphabet heavily investing in AI technology, transforming its Google Search platform and developing large language models. In contrast, Apple has had a measured rollout of AI products and may have missed an opportunity to create an AI subscription.
Buffett is known as a value investor and tends to avoid expensive stocks, but he makes exceptions. Currently, Alphabet is cheaper than Apple in terms of operating income, making it the better bargain. However, it's essential to consider the potential risks and benefits associated with investing in AI-focused businesses.