Berkshire Hathaway’s latest regulatory filing has reignited debate over Warren Buffett’s evolving investment strategy after the conglomerate disclosed a substantial new stake in Alphabet, even as it continued to reduce its long-held position in Apple. The move marks a notable rebalancing within Berkshire’s technology exposure at a time when artificial intelligence reshapes market leadership and valuations test historic highs.

A Strategic Pivot Toward Alphabet’s AI Momentum

Berkshire revealed a $4.3 billion Alphabet position at the end of the third quarter, making the Google parent its 10th-largest equity investment. The addition is noteworthy because Buffett has historically avoided fast-growing, innovation-driven companies whose valuations rely heavily on future earnings. Alphabet, however, fits squarely into the center of the AI revolution, with its cloud business benefiting from a surge in demand for compute power, generative AI tools, and enterprise digitalization.

Given Buffett’s own reservations about high-growth tech, analysts widely believe the purchase was made by investment managers Ted Weschler or Todd Combs—both known for expanding Berkshire’s exposure to next-generation technology. Their track record includes initiating Berkshire’s position in Amazon in 2019, which remains a $2.2 billion holding today.

Alphabet’s 46% share price rally this year reflects renewed investor confidence in its ability to compete with Microsoft and Amazon in cloud services while accelerating its AI deployment across products, advertising tools, and enterprise applications. The investment signals Berkshire’s recognition that AI infrastructure and cloud computing have become core economic engines that cannot be ignored within a modern portfolio.

A Steady Retreat From a Longtime Favorite

In contrast to the Alphabet purchase, Berkshire continued to trim its massive Apple position, cutting another 15% during the third quarter to $60.7 billion. The sales extend a surprising and aggressive unwind: Buffett has unloaded roughly two-thirds of the Apple shares Berkshire once held, a stark pivot from his previous characterization of Apple as Berkshire’s “third business,” alongside insurance and railroads.

Even with these reductions, Apple remains Berkshire’s largest equity holding by a wide margin, underscoring the scale of the original position. But the selling spree reflects Berkshire’s discomfort with stretched valuations across the megacap tech universe. The conglomerate has now been a net seller of equities for 12 straight quarters—a full three years—locking in gains while sidestepping what Buffett has repeatedly called an overheated market.

Positioning for a Shifting Market Cycle

The divergent moves—buying Alphabet while selling Apple—highlight a broader effort by Berkshire to reposition ahead of an uncertain economic cycle. As AI accelerates capital spending and reshapes competitive dynamics, Berkshire appears increasingly selective about where it wants to maintain long-term exposure. Alphabet offers growth tied to secular AI adoption, while Apple faces slowing hardware sales and greater regulatory risk.

The coming quarters will show whether Berkshire continues moving deeper into AI-linked assets or maintains its defensive posture as valuations stabilize. For investors, the portfolio shift signals that even the world’s most disciplined value investor now sees structural changes in technology too significant to ignore.