Buffett's Berkshire Invests in AI as Tradition Embraces a Technology-Focused Transformation

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Buffett's Berkshire Invests in AI as Tradition Embraces a Technology-Focused Transformation

Bitget-RWA2025/11/15 13:34

By:Bitget-RWA

- Warren Buffett's Berkshire Hathaway acquired a $4.3B Alphabet stake, marking a shift from traditional value investing to AI-driven tech investments. - The move includes a 15% reduction in Apple holdings to 238.2M shares, while trimming Bank of America and exiting D.R. Horton positions. - As Buffett prepares to step down, his handpicked team's tech focus raises questions about balancing legacy value strategies with AI-era growth opportunities. - Alphabet's 46% 2025 stock surge, driven by cloud/AI leadersh

Warren Buffett’s Berkshire Hathaway has taken a significant step into the tech industry,

purchasing a $4.3 billion share in Alphabet Inc.

, the parent firm of

Google

, according to its 13F filing for the third quarter of 2025. This investment signals a shift away from Buffett’s usual value investing strategy,

which has typically focused on sectors such as insurance, finance, and consumer products

Alphabet has now become Berkshire’s tenth-largest stock holding

, with 17.85 million shares bought at an average cost of $243 each.

Buffett's Berkshire Invests in AI as Tradition Embraces a Technology-Focused Transformation image 0

This move into Alphabet, a technology powerhouse valued at $3.4 trillion, reflects the ongoing surge in AI-driven markets.

Alphabet’s shares have climbed 46% in 2025

, fueled by its dominance in cloud services, advertising, and progress in artificial intelligence. This change in direction appears to be led by Buffett’s chosen investment managers, Todd Combs and Ted Weschler, who have increasingly favored tech stocks in recent years.

At the same time, Berkshire has continued to sharply decrease its

Apple Inc.

holdings,

cutting its position by 15% during the third quarter

to 238.2 million shares, now worth $60.7 billion.

Even after these sales, Apple remains Berkshire’s largest stock investment

, making up 22.7% of its portfolio. Since 2023, the company has sold off nearly 75% of its original 905 million

Apple

shares, generating $12.5 billion in cash this quarter. Experts believe these sales are due to concerns about high valuations in the tech industry, despite Apple’s record-breaking $416 billion in revenue for fiscal 2025.

These portfolio changes come as Buffett prepares to retire as CEO by the end of the year, with Greg Abel set to take over a $283 billion investment portfolio. The 95-year-old investor has long been wary of technology stocks,

famously regretting missed investments in Amazon and Google

In the third quarter, Berkshire also reduced its stake in Bank of America by 6% and

completely exited its investment in homebuilder D.R. Horton

. The company increased its shares in Sirius XM and insurance firm Chubb, while holding steady in American Express and Coca-Cola.

This strategic pivot raises questions about how Berkshire’s next generation of leaders will balance Buffett’s value-oriented philosophy with a growing interest in technology. As the AI sector continues to expand, investors are eager to see whether the Omaha-based conglomerate will pursue more high-growth investments or return to its traditional industries.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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