Warren Buffett's Successor, Greg Abel, Has 32% of Berkshire Hathaway's $364 Billion Portfolio Invested in 3 Unstoppable AI Stocks
2026-10-23 09:06
•Sean Williams •The Motley Fool
••••• •••••••• Axe Cap view
Berkshire’s Big Bet on AI: What South Africans Should Watch
Greg Abel’s technology pivot at Berkshire Hathaway highlights AI’s growing muscle, but South African investors must tread carefully.
Greg Abel's move to pile a third of Berkshire Hathaway's colossal $364 billion portfolio into Apple, Alphabet, and AI-focused Bending Spoons signals a clear shift from Buffett's traditional value playbook. While this technology-heavy bet might look like the future, local investors need to think about the rand and market context. Apple and Google dominate global tech, but their hefty US dollar exposure can mean volatility for South Africans when the USD/ZAR moves sharply. The rand tends to weaken when the dollar strengthens, which can eat into returns even if underlying stocks do well. Stocks like Naspers and Prosus give direct AI and tech exposure with a local angle, but they come with their own emerging-market risks. So, while it’s tempting to follow Berkshire’s tech pivot blindly, consider currency swings and balance within your portfolio. The tech wave looks unstoppable, but timing and diversification matter. this is just our opinion and not financial advice
Watch the USD/ZAR closely before adding direct US tech exposure like Apple or Alphabet. Prefer trimming into local tech proxies like Naspers and Prosus given their rand hedge. Avoid going all-in on global AI stocks without currency protection.
- USD/ZAR
- Naspers
- Prosus
- Rand strength/weakness impacting returns
- Disappointing tech earnings or regulation
- Global interest rate hikes affecting growth stocks
6/10
Greg Abel, who took over as CEO of Berkshire Hathaway after Warren Buffett's retirement on Dec. 31, has significantly shifted the company's investment strategy toward technology and AI stocks. Nearly $116 billion (32%) of Berkshire's $364 billion portfolio is now concentrated in three AI-focused companies: Apple ($78.28 billion), Alphabet ($36 billion), and Bending Spoons ($1.44 billion). This represents a major departure from Buffett's traditional investment approach.
Our take is based on reporting first published by The Motley Fool.