Berkshire Hathaway has been selling Apple stock throughout the artificial intelligence (AI) revolution. Over the last three years, artificial intelligence (AI) has become a theme so influential that the broader market seems to ebb and flow based on this singular narrative. The S&P 500 and Nasdaq Composite indices are both hovering near record highs, with megacap technology stocks being some of the largest contributors to the market’s ongoing rally.
While just about every major investment fund on Wall Street can’t seem to get enough of AI, Berkshire Hathaway’s Warren Buffett — who just retired as CEO — has primarily stuck to his contrarian methods. Throughout the AI revolution, Berkshire has been a net seller of stocks — hoarding cash on its balance sheet and collecting passive income through Treasury bills.
## No longer the apple of Buffett’s eye
Berkshire Hathaway has long been a fan of consumer businesses and financial services. For decades, many of the firm’s largest positions have included insurance companies and banks, as well as a mix of consumer staples and discretionary brands.
Back in 2016, Buffett made headlines following Berkshire’s purchase of Apple stock. Many investors viewed this as a rare instance of Buffett investing in the technology sector. However, given Apple’s brand moat, consumer loyalty, robust hardware ecosystem, and steady cash flow generation, the company actually checks off many of Buffett’s investment criteria.
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A combination of meaningful price appreciation and subsequent buying over the last decade ultimately turned Apple into Berkshire’s largest position. Throughout the AI revolution, however, Buffett has been trimming exposure to the iPhone maker.
| Position | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
| — | — | — | — | — | — | — | — | — |
| Apple shares (in millions) | 906 | 789 | 400 | 300 | 300 | 300 | 280 | 238 |
Data Source: 13f.info
## Berkshire’s New AI Play
Last quarter, Berkshire finally put some of its excess capital to use and made a significant addition to its portfolio. The company acquired a stake in Alphabet, the parent company of Google.
While Alphabet has been a stalwart in the AI space for years, the stock has seen significant growth in recent times, driven by the increasing adoption of AI-related services. Berkshire’s decision to invest in Alphabet suggests that the company is optimistic about the long-term potential of the AI industry.
## Conclusion
Warren Buffett’s decision to sell Apple stock and buy into Alphabet is a testament to his contrarian approach to investing. While many investors are flocking to AI-related stocks, Buffett has chosen to take a more measured approach, focusing on companies with strong fundamentals and long-term potential. Berkshire’s investment in Alphabet suggests that the company sees significant growth potential in the AI industry and is positioning itself for long-term success.
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**Disclosure:** We encourage you to do your own research and consult with a financial advisor before making any investment decisions.
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