Warren Buffett’s Successor, Greg Abel, Has Nearly 30% of Berkshire Hathaway’s $351 Billion Portfolio in These 2 Magnificent Artificial Intelligence (AI) Stocks

Key Points

• During this year’s first half, Berkshire invested heavily in Alphabet while keeping Apple as its largest position.

• Both Alphabet and Apple share many traits that Buffett looks for in long-term positions.

• While they are not inexpensive stocks, their premiums are justified in an otherwise frothy market.

• 10 stocks we like better than Alphabet ›

This year has marked a new chapter for Berkshire Hathaway as Greg Abel has assumed the role of CEO, succeeding Warren Buffett’s more than five-decade tenure. Throughout 2026, Abel has executed a number of decisive changes in Berkshire’s portfolio.

For instance, during the first quarter, Berkshire fully exited its stakes in Amazon and Domino’s Pizza. Meanwhile, the company kept Apple (NASDAQ: AAPL) as its largest holding by a wide margin and significantly increased its position in Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). As of this writing (July 14), Berkshire’s equity portfolio stands at $351 billion, with Apple and Alphabet together representing roughly 30% of invested capital.

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While Berkshire has long avoided investments in high-growth, volatile technology stocks, the concentrated positions in Apple and Alphabet underscore an extension of Buffett’s investing philosophy packaged across two leading artificial intelligence (AI) names.

Image source: The Motley Fool.

Abel has been buying Alphabet stock like there’s no tomorrow

Since taking the reins as CEO, Abel has moved quickly to double down on Berkshire’s exposure to Alphabet. During the first quarter, Berkshire nearly tripled its existing position in Alphabet — lifting the internet giant into the ranks of the portfolio’s largest holdings. Subsequently, Berkshire further committed $10 billion through a private placement as part of Alphabet’s broader $80 billion equity raise — allocating $5 billion each to Class A and Class C shares.

These actions reflect a strong conviction in Alphabet’s long-term growth prospects. Google continues to dominate search with a near-monopoly position. This moat helps the company generate predictable, high-margin advertising revenue and consistent cash flow. Moreover, Alphabet has further diversified its revenue streams across YouTube, Google Cloud Platform, and consumer electronics, providing multiple avenues for growth during any economic cycle.

While it’s not the top reason to open a position in Alphabet stock, the company also employs a modest dividend program — adding another dimension of shareholder value while preserving the financial flexibility to reinvest in high-return opportunities, especially in the AI ecosystem.

Abel’s willingness to build Berkshire’s position in Alphabet so quickly may be a signal that he views the company as a wide-moat business capable of compounding earnings power over the long run. This template is consistent with Berkshire’s preference for owning exceptional companies with strong competitive advantages and reliable cash-flow generation.

Image source: Getty Images.

Apple remains the king of Berkshire’s portfolio

Although Berkshire has been steadily trimming its position in Apple over the last couple of years, Abel has retained the iPhone maker as the portfolio’s largest holding. This is interesting because Apple holds a relatively measured position in the generative AI landscape.

I think Abel’s decision to continue holding Apple rests on several of the company’s enduring strengths. For starters, Apple is one of the most powerful consumer brands and ecosystem moats in the world. The company’s tight integration across hardware, software, and services creates meaningful switching costs and supports recurring revenue streams. As a result, Apple produces enormous profits and free cash flow, much of which is returned to investors through aggressive share repurchases.

I think one of the most underappreciated aspects of Apple is its position as a platform toll collector for AI. Developers building applications or features for iOS must navigate Apple’s App Store and payment systems. This creates a durable revenue vehicle independent of which AI models are adopted.

Looking even further ahead, Apple has a meaningful optionality to expand its reach into AI-enhanced devices and services. This emerging opportunity aligns with Berkshire’s affinity for businesses that are adaptable and have multiyear growth runways.

Apple and Alphabet are attractive stocks in an otherwise frothy market

What ties the positions in Apple and Alphabet under Abel’s direction is a reasonable valuation profile relative to their growth potential. Apple trades at a forward price-to-earnings ratio (P/E) around 36, while Alphabet trades at a forward earnings multiple near 25. While neither is cheap per se, these premiums are justified in a broader market environment where many technology and AI-related names carry stretched valuations driven by speculative enthusiasm.

AAPL PE Ratio (Forward) data by YCharts

Both Apple and Alphabet possess durable competitive moats, exceptional cash generation, and quality management teams oriented toward long-term value creation. Abel appears to regard each company as a rare combination of business quality and valuation. In a period when froth has elevated broader indexes, the concentrated commitments to Apple and Alphabet reflect prudent capital allocation rather than momentum-driven decisions.

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Adam Spatacco has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, and Domino’s Pizza. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.