Under new leadership following Warren Buffett’s departure at the start of 2026, Berkshire Hathaway has committed 34.7% of its massive portfolio to two artificial intelligence heavyweights—Apple and Alphabet—while maintaining historic holdings in Coca-Cola and eyeing missed opportunities like Costco.
When Warren Buffett stepped down from his role as CEO of Berkshire Hathaway at the beginning of 2026, market watchers waited to see if the conglomerate would alter its steady playbook. His successor, Greg Abel, previously served as the vice chairman of the conglomerate’s non-insurance operations. Abel embraces the Oracle of Omaha’s investing philosophy, and management changes have not disrupted the firm’s core portfolio strategy. In fact, Berkshire Hathaway has leaned further into the technology stalwarts Buffett championed, dedicating more than a third of its total portfolio to two premier artificial intelligence players.
Apple and Alphabet Anchor Berkshire Hathaway’s Technology Strategy
Apple remains Berkshire Hathaway’s largest holding by a wide margin, commanding 22.04% of the conglomerate’s portfolio. Even though the firm has trimmed its position in the iPhone maker in recent years, Buffett has previously called Apple probably the best business in the world. The company generates consistent earnings and cash flows thanks to a loyal customer base where the iPhone functions much like a recurring subscription.
With more than 2.5 billion active devices in circulation, Apple holds a unique distribution advantage for deploying artificial intelligence features via software updates. The company recently experienced a share price pullback following its third-quarter fiscal year 2026 update, which ended on June 27, driven by weak guidance stemming from supply constraints. Yet analysts view this volatility as temporary noise against a backdrop of durable long-term prospects.
Meanwhile, Alphabet accounts for 12.62% of the portfolio. Berkshire Hathaway first initiated a position in Alphabet in the third quarter of 2025 under Buffett’s direction, and Abel’s team substantially increased that stake during the second quarter. Alphabet ended that period with $514 billion in cloud backlog, dwarfing its trailing-12-month revenue of $446.31 billion for the entire business. While Alphabet’s free cash flow turned negative in the second quarter due to heavy AI-related capital expenditures, and the tech giant continues to navigate numerous lawsuits concerning YouTube, its cloud computing strength makes the stock a compelling pillar for Berkshire.
Coca-Cola’s Dividend Streak and Costco’s Missed Potential
Beyond tech, Berkshire Hathaway maintains massive legacy positions that generate substantial passive income. Coca-Cola, which represents a holding of 400 million shares acquired by Buffett between 1988 and 1994 for a total cost of $1.3 billion, continues to reward patient investors. The beverage giant has raised its dividend for 64 straight years, sending $848 million in annual passive income to the Omaha-based conglomerate based on its current dividend of $0.53 per quarter. During the second quarter ended July 3, Coca-Cola reported $4.7 billion in operating income on $13.4 billion in sales, achieving a stellar operating margin of 35% through a capital-light strategy of outsourcing bottling and distribution.
At the same time, the shadow of past exits lingers over Berkshire’s retail strategy. Berkshire owned shares of Costco Wholesale for roughly two decades before selling out completely in 2020—a move that vice chairman Charlie Munger openly disagreed with. Buffett later admitted that dumping Costco was probably a mistake, noting that the stock roughly doubled after Berkshire’s exit. Costco’s financial performance continues to validate that regret, with net sales for the third quarter of fiscal 2026 rising 11.6% to $69.15 billion and total revenue hitting $70.53 billion.
What Abel’s Succession Means for Future Portfolio Moves
As Abel shapes the future of Berkshire Hathaway, market participants are watching to see if the new leadership will revisit dominant consumer franchises that Buffett walked away from. Costco’s latest numbers—including a July 2026 sales update reporting net sales of $23.12 billion for the four weeks ending Aug. 2, up 10.7% year over year, alongside membership renewal rates of 92.3% in the U.S. and Canada—mirror the exact kind of predictable, cash-generative compounding Berkshire traditionally admires.
While investors do not necessarily need to bet that Berkshire will immediately repurchase Costco shares, the underlying philosophy remains instructive. Abel has shown a willingness to lean into dominant consumer and tech-adjacent names when the economic fundamentals are undeniable. Whether Berkshire actively expands its portfolio or simply defends its massive stakes in Apple, Alphabet, and Coca-Cola, the transition of power marks a continuation of disciplined, long-term capital allocation designed to weather shifting economic tides.
