- BRK-B
- GOOG
- AAPL
Warren Buffett, the legendary CEO ofBerkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), stepped down from his role at the beginning of 2026. His successor is Greg Abel, who previously served as the vice chairman of the conglomerate’s non-insurance operations. This change in management likely won’t have a substantial impact on how Berkshire Hathaway operates, including its portfolio management. Buffett is still deeply involved with the company, and Abel embraces the Oracle of Omaha’s investing philosophy.
Case in point: Since Abel took over — and other than getting rid of some positions formerly managed by Todd Combs, who recently left the company — Berkshire Hathaway has doubled down on stocks Buffett loves. Two excellent examples areApple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). These two combine for 34.7% of Berkshire Hathaway’s portfolio. Here’s why both stocks have a great future.
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1. Apple — 22.04% of the portfolio
Apple has been Berkshire Hathaway’s largest holding for a long time, even though the conglomerate has trimmed its position in the iPhone maker in recent years (but not during the second quarter). Buffett once said that Apple is probably the best business in the world. That’s high praise, and it’s entirely warranted. Apple generates consistent earnings and cash flows thanks to its popular devices, especially the iPhone.
The iPhone almost functions like a subscription that hundreds of millions of people renew every few years. Apple’s customers are highly loyal. Because the iPhone has unique features and ways to interact with other devices within the company’s ecosystem — not to mention the large amount of data that is a pain to transfer to a competitor’s platform — Apple boasts a wide moat from high switching costs.
The company still has significant growth opportunities. For instance, Apple has been integrating artificial intelligence (AI) features to improve its devices. This could help increase renewal rates and even bring new people into its ecosystem. Apple has an advantage, as it boasts more than 2.5 billion active devices in circulation, enabling it to distribute AI services very rapidly, including
This massive user base also enables it to understand how people interact with AI features and make adjustments as needed. Elsewhere, another important opportunity for the company is its high-margin services segment, which should help lift profits and margins in the long run as it continues to expand. Apple recently fell after its third-quarter fiscal year 2026 update, which ended on June 27. The company’s results were strong, but it posted weak guidance partly due to supply constraints.
