Warren Buffett's Successor, Greg Abel, Has 30% of Berkshire's $358 Billion Portfolio Invested in 2 Preeminent AI Stocks
Key Points
Warren Buffett retired as Berkshire Hathaway's CEO on Dec. 31, giving Greg Abel oversight of the company's massive investment portfolio.
Abel overhauled Berkshire's portfolio in the first quarter, with his company now sporting more exposure to the technology sector.
Google parent Alphabet is to Greg Abel what Apple was to Warren Buffett for so many years.
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For the first time in well over half a century, Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) entered the year in uncharted territory. The retirement of CEO Warren Buffett on Dec. 31 meant his longtime understudy, Greg Abel, would oversee day-to-day operations and the company's $358 billion investment portfolio.
Abel hasn't wasted any time making his presence felt. He completely overhauled Berkshire's portfolio in the first quarter and continued making sizable changes in the June-ended quarter. As of Aug. 20, Berkshire has a more tech-oriented portfolio, with approximately 30% of the company's invested assets tied up in just two preeminent artificial intelligence (AI) stocks: Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG).
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Warren Buffett retired as Berkshire Hathaway's CEO on Dec. 31. Image source: The Motley Fool.
Apple: $71 billion (19.8% of invested assets)
As has been the case for quite some time, Apple remains Berkshire Hathaway's largest position.
When Warren Buffett first began adding shares of Apple in early 2016, he did so not as a tech-focused investor. Rather, he marveled at consumers' incredible loyalty to the brand and their willingness to pay a premium for its physical devices. Apple is among a small handful of influential businesses that are very successful in keeping consumers within their product and service ecosystem.
But this stalwart company is evolving, and AI is very much part of its future. In addition to Apple's emphasis on higher-margin and loyalty-driving subscription services, the company launched Apple Intelligence for its physical devices less than two years ago. This tech relies on generative AI and your personal preferences to simplify tasks, such as writing and summarization tools.
The expectation is that Apple Intelligence will bolster demand for iPhone, iPad, and Mac, leading to higher sales and enhanced customer loyalty. With Apple trading at a historically expensive forward price-to-earnings ratio of 33, the company will need its AI investments to pay off.
Image source: Getty Images.
Alphabet: $36 billion (10.1% of invested assets, including both share classes, GOOGL and GOOG)
However, the bigger storyline of Abel's tenure has been his aggressive purchasing of both classes of Alphabet stock. With roughly $17 billion spent buying shares of Google's parent company in the second quarter, Alphabet is now Berkshire's fourth-largest position (as of Aug. 20).
Both Abel and his predecessor appreciate businesses with sustainable moats, and that's precisely what Alphabet delivers. Google held a 91% share of global internet search traffic in July, according to GlobalStats. Meanwhile, YouTube is the second-most-visited social site on the planet. Collectively, Alphabet draws in online advertisers like nobody's business.
GOOGLE'S $GOOGL Q2 EARNINGS HIGHLIGHTS
-- Evan (@StockMKTNewz) July 22, 2026
- Google total revenue: +24% YoY
- Search & Other Ads: +17% YoY
- Google Cloud: +82% YoY, backlog now at $514B
- 1P Model APIs: ~22B tokens per minute, up from 16B+ last quarter
- YouTube Ads: +13% YoY
- Gemini App: 950M monthly active... pic.twitter.com/cUdBZI9a6C
But it's the company's AI operations that are expected to drive the bulk of its operating cash flow growth going forward. Ever since Alphabet began integrating generative AI and large language model solutions into Google Cloud, sales for this high-margin segment have skyrocketed. Google Cloud's revenue surged 82% in the second quarter, with annual run rate sales now topping $99 billion.
The last two quarters suggest that Berkshire Hathaway's new boss has found his version of Apple in Alphabet. Although Google's parent company isn't as cheap as it's been in recent years, its sustainable advertising moat and otherworldly AI sales growth clearly have Abel's attention.
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Sean Williams has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
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