This isn’t your grandparents’ Berkshire Hathaway (BRKA +0.32%)(BRKB +0.26%) anymore! Following the retirement of billionaire Warren Buffett as CEO on Dec. 31, Berkshire has a new boss overseeing the company’s day-to-day operations and $330 billion investment portfolio: Greg Abel.
The Oracle of Omaha’s successor wasted no time overhauling Berkshire’s portfolio during the first quarter. Notably, he completely exited a third (16) of the positions Buffett had overseen, and has concentrated over 28% of Berkshire Hathaway’s portfolio into two artificial intelligence (AI) titans: Apple (AAPL +2.90%) and Google parent Alphabet (GOOGL 3.96%)(GOOG 3.92%).
Warren Buffett retired as Berkshire’s CEO on Dec. 31, 2025. Image source: The Motley Fool.
Apple: $71.1 billion (21.6% of invested assets)
Although Apple has been Berkshire’s No. 1 investment holding by market value for years, Buffett spent his final two years in charge as a persistent seller of Apple shares. Despite Buffett shedding 75% of his company’s Apple stake, it still accounts for close to 22% of invested assets.
The Oracle of Omaha always appreciated Apple for its consumer ties and its market-leading share repurchase program. While Buffett never had a firm understanding of Apple from a technological standpoint, he was well aware of the company’s pricing power and consumers’ loyalty to the brand.
AAPL Shares Outstanding data by YCharts.
Since initiating a buyback program in 2013, Apple has spent north of $853 billion to lower its outstanding share count by more than 44%. This has had an undeniably positive impact on its earnings per share.
Abel believes Apple can be a multidecade compounder in Berkshire’s portfolio, with AI expected to play a key role. Apple’s integration of AI solutions (Apple Intelligence) into its physical devices, coupled with ongoing updates to its voice assistant Siri, should bolster demand for iPhone, Mac, and iPad.
Image source: Getty Images.
Alphabet: $22 billion (6.7% of invested assets, both share classes combined)
Perhaps the most eyebrow-raising move of Greg Abel’s early tenure is his perceived conviction in Google parent Alphabet. During the March-ended quarter, Abel scooped up 36,403,656 additional Alphabet Class A shares (GOOGL) and opened a new position with 3,585,215 Alphabet Class C shares (GOOG). Collectively, this now ranks as a top-five position for Berkshire Hathaway, valued at $22 billion on May 29.
Alphabet certainly offers the sustainable moat that Berkshire’s current and now-former boss appreciates. According to GlobalStats, Google has accounted for between 89% and 93% of monthly global internet search traffic over the trailing decade. With Alphabet also the parent of streaming platform YouTube, the second-most-visited site on the planet behind Google, it’s easy to see why it has such incredible ad pricing power.
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But Alphabet’s long-term growth story centers on AI. Since integrating generative AI solutions and large language model capabilities into Google Cloud, sales growth for this considerably higher-margin segment has reaccelerated. During the first quarter, Google Cloud’s sales jumped by 63% compared with the previous year.
Whereas Nvidia has been the face of the infrastructure side of the AI revolution, Alphabet has positioned itself as one of the premier companies in AI applications.
With 28% of Berkshire Hathaway’s portfolio exposed to two AI titans, Abel has made it clear that tech stocks are firmly on the menu in the post-Buffett era.
