The end of an era at Berkshire Hathaway has brought with it the beginning of a new investment thesis. As Greg Abel officially assumes leadership of the legendary conglomerate in early 2026, the portfolio he inherits looks dramatically different from the one Warren Buffett built—and the changes reveal a strategic pivot that has Wall Street buzzing.
The Apple Exodus: From 905 Million to 238 Million Shares
At its peak, Berkshire's Apple position represented one of the most concentrated bets in institutional investing history. The conglomerate held over 905 million shares of the iPhone maker, a stake so massive that Apple alone accounted for roughly half of Berkshire's entire equity portfolio value.
That position has now shrunk to approximately 238 million shares—a reduction of nearly 75% that has generated tens of billions in proceeds. The selling accelerated dramatically in the second quarter of 2024, when Berkshire shed a staggering 50% of its holdings in a single quarter. The trimming continued throughout 2025, with a final 15% reduction in Q3.
"The retreat from the iPhone maker has not resulted in a flight from technology altogether; instead, it has funded a strategic pivot into a new 'Magnificent' AI powerhouse."
— Financial analysis from MarketMinute
Despite the massive reduction, Apple remains Berkshire's largest marketable equity holding heading into 2026. But the message is clear: the Oracle of Omaha's heirs are diversifying away from the bet that defined the final chapter of his investing career.
Enter Alphabet: A $4.3 Billion Statement
Where has the Apple money gone? A substantial portion has flowed into a massive new position in Alphabet, Google's parent company. Berkshire revealed a purchase of 17.8 million shares valued at roughly $4.3 billion—a stake that signals confidence in the search giant's artificial intelligence capabilities.
The timing is notable. Alphabet has emerged as one of the Magnificent Seven stocks best positioned to monetize the AI revolution, with its Gemini large language model challenging OpenAI's GPT technology and its cloud computing division showing accelerating growth. The company closed 2025 up 60%, making it the best performer among the mega-cap tech leaders.
The AI Thesis Takes Shape
Berkshire's pivot from Apple to Alphabet reflects a broader strategic shift in how the conglomerate views technology investing. Apple, for all its strengths, faces questions about its AI strategy. The company's cautious approach to artificial intelligence and delayed Siri overhaul have prompted skepticism about whether it can keep pace with more aggressive competitors.
Alphabet, by contrast, has positioned itself at the forefront of the AI race. Its dominance in search, combined with billions in AI infrastructure investments and a leading position in autonomous vehicles through Waymo, offers multiple pathways to capitalize on the technology revolution.
Greg Abel's Inheritance: Three AI Stocks, 23% of the Portfolio
The Alphabet investment doesn't stand alone. Heading into 2026, Berkshire has 23% of its portfolio invested in three artificial intelligence stocks, according to analysis from The Motley Fool. This concentration in AI-related companies marks a significant departure from Buffett's historical reluctance to invest in technology he didn't fully understand.
The shift reflects both generational change and market realities. While Buffett famously avoided tech stocks for decades before his Apple investment, today's economy is so thoroughly shaped by artificial intelligence that avoiding the sector entirely would mean missing the decade's most transformative investments.
Why Sell Apple Now?
Several factors likely contributed to Berkshire's decision to reduce its Apple exposure:
Portfolio concentration risk: With Apple accounting for nearly half of the equity portfolio at its peak, any sustained decline in the stock would have outsized impacts on Berkshire's overall performance. Even Buffett, known for concentrated bets, acknowledged the position had grown unwieldy.
Valuation concerns: Apple trades at premium multiples that leave less room for upside compared to when Berkshire first built its position. The company's growth has slowed, with services now carrying the load as iPhone sales plateau in mature markets.
Tax considerations: Berkshire has accumulated substantial unrealized gains on its Apple shares. Selling during a period of favorable tax policy may have seemed prudent before potential changes under future administrations.
Capital redeployment: With Apple proceeds, Berkshire can fund new opportunities like Alphabet while maintaining its legendary cash pile for opportunistic acquisitions.
What It Means for Investors
Berkshire's portfolio moves have traditionally served as valuable signals for individual investors. The Apple-to-Alphabet pivot suggests several takeaways:
AI exposure matters: Even the most traditional value investor now recognizes that artificial intelligence will reshape every industry. Avoiding AI-related companies entirely may prove costly.
Concentration has limits: When even Buffett trims a winner, it's a reminder that position sizing matters. Letting any single stock dominate a portfolio creates risks that compound over time.
Change is possible: Berkshire's willingness to evolve its investment thesis demonstrates that adapting to new realities isn't a betrayal of principles but rather their proper application.
The Abel Era Begins
As Greg Abel takes the helm, he inherits both Buffett's reputation and the responsibility of stewarding more than $300 billion in publicly traded securities. The early signals suggest he's willing to make his own mark while honoring the fundamental value-investing principles that built Berkshire's empire.
The Alphabet investment, in particular, represents a bet on the future rather than the past. While Apple rewarded Berkshire handsomely during Buffett's final years, the next decade's winners may look quite different. In pivoting to Alphabet, Abel is positioning Berkshire to participate in whatever comes next.
For investors watching from the sidelines, the message is clear: the Oracle may have retired, but Berkshire isn't standing still. The conglomerate's willingness to evolve—even dramatically—offers lessons for anyone managing a long-term portfolio in an era of rapid technological change.
