Berkshire Hathaway Increases Alphabet Stake and Maintains Apple Holding

Berkshire Hathaway reported second-quarter results on August 8, revealing a strategic pivot toward technology and artificial intelligence under CEO Greg Abel. While the conglomerate historically preferred traditional industries, Abel has maintained Apple as the largest stock holding in the equity portfolio, representing 20.1% of its value.

Abel significantly increased Berkshire's position in Alphabet Inc. during the first quarter of 2026. This expansion continued in June with a $10 billion investment in a private placement deal during Alphabet's $80 billion equity offering. These moves leverage Alphabet's AI data center and cloud infrastructure, as well as Apple's position as a consumer gateway for generative AI applications.

Alphabet continues to see high demand and revenue growth within its cloud services division, maintaining 60% gross margins and double-digit returns on investments despite increased capital expenditures. However, the company faces risks from market competition and outstanding lawsuits. Abel maintains that these tech-focused investments still align with the company's core value-based investing framework.