Berkshire Hathaway, the powerhouse company led by Warren Buffett, has allocated a substantial portion – roughly a fifth – of its $294 billion stock portfolio to two rapidly expanding artificial intelligence (AI) firms.
Warren Buffett, the legendary CEO of Berkshire Hathaway, announced his successor earlier this year - Greg Abel, who is set to take over the reins in January 2026. Buffett, who has been at the helm since 1965, has built Berkshire into the world's most successful investment conglomerate.
Greg Abel, currently chairman and CEO of Berkshire Hathaway Energy and vice-chairman of the company's non-insurance operations, will take over after Buffett's departure at the end of this year. Abel's appointment comes after a 60-year tenure by Buffett.
Berkshire Hathaway's portfolio reflects Buffett's investment philosophy. Apple, one of the company's key holdings, has been Berkshire's largest position for several years, accounting for roughly 21.5% of its public stock portfolio. However, over the last year, Berkshire has been trimming its position in Apple. Despite this, Buffett recently included Apple in his list of stocks he expects to hold forever.
In addition to Apple, Berkshire Hathaway's portfolio includes two artificial intelligence (AI) companies, accounting for more than 22% of its $294 billion portfolio. Berkshire first initiated a position in Amazon stock in 2019, and as of this writing, Amazon stock accounts for 0.8% of Berkshire's public stock portfolio, making it the 23rd-largest holding.
Amazon, despite its dominance in the e-commerce sector, has historically had high operating costs associated with its business, keeping margins lower than those of its AWS cloud-infrastructure unit. However, advances in AI, robotics, and automation could significantly improve Amazon's e-commerce business profitability over the next five years, potentially making Amazon stock a major mega-cap winner over the next half-decade.
Meanwhile, Buffett has expressed his admiration for Apple. He loves the company for its management, its ability to make money without heavy investment, its exclusive ecosystem, and its strong global brand that keeps users within the ecosystem.
Berkshire Hathaway, with a market capitalization of roughly $1.05 trillion, ranks as the world's 11th largest business overall. The company's cautious approach to portfolio composition is evident in its cash-and-short-term equivalents, which stand at approximately $344.1 billion, suggesting a careful approach to perceived market risks.
As Greg Abel prepares to take the reins, Berkshire Hathaway's investment strategy will continue to be shaped by Buffett's principles, with a focus on companies that generate consistent profits, strong management, and a competitive edge in their respective industries.
%20firms.){kind=link}