Warren Buffett's Successor, Greg Abel, Has $114.4 Billion Invested in These 3 Tech Stocks. None Is a Pure-Play Artificial Intelligence (AI) Company.
Berkshire Hathaway has nearly one-third of its portfolio in just three stocks.
Warren Buffett's long-time investment partner, Greg Abel, has allocated $114.4 billion of Berkshire Hathaway's $364 billion portfolio into three technology companies that are benefiting from artificial intelligence (AI) without being pure-play AI businesses. Apple, Alphabet, and Bending Spoons make up 31.4% of Berkshire's estimated investment portfolio, and none of these investments is focused solely on AI.
Apple has been a notable investment for Berkshire since 2016, with a stake of 227.9 million shares currently valued at $79.1 billion. Apple's ecosystem, including iPhones, Mac computers, wearables, and subscription services, provides high-margin, recurring revenue opportunities. Berkshire has been reducing its Apple holdings but has recently stabilized the position.
Berkshire Hathaway increased its Alphabet stake from approximately 17.8 million shares to nearly 54 million during Abel's leadership. Alphabet's Google Search, YouTube, and Google Cloud generate substantial revenue, cash flow, and opportunities to monetize AI. Although AI initially threatened Google's advertising business, the company has integrated AI-generated responses into its search experience and is now a competitor to AI chatbots from OpenAI and Anthropic.
Google Cloud's revenue grew by 82% year-over-year to $24.8 billion, with a $514 billion cloud backlog.
Bending Spoons, an Italian company specializing in acquiring established digital businesses, has an unconventional technology bet with Berkshire. The company leverages AI to optimize its acquired businesses, including brands such as Evernote, Vimeo, and AOL. Berkshire's investment in Bending Spoons increased from a $600 million IPO stake to an additional $330 million through a private placement, raising Berkshire's ownership to about 4%.
Bending Spoons uses AI to enhance its existing product portfolio's profitability rather than competing directly with AI leaders like OpenAI or Anthropic.
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