A Major Player in the AI Sector: Buffett's Successor Explains Why He Bought More Google Stock

Google’s successes in the field of artificial intelligence have convinced legendary investor Warren Buffett and his successor at the helm of Berkshire Hathaway, Greg Abel, to increase their investment in the company, Abel said in an interview with CNBC. Alphabet currently ranks third in terms of its share of the company’s portfolio. Artificial intelligence, which requires the expansion of data centers, has a positive impact on the business and on Berkshire itself, Abel added.

Abel called Alphabet a “major player” in the AI sector, according to CNBC. This was one of the factors that prompted him and Buffett, who currently serves as chairman of Berkshire’s board of directors, to approve an additional $10 billion investment in Alphabet—Google’s parent company—Reuters reports, citing Abel.

“We have a pretty good understanding of how companies within Berkshire are using AI and how it benefits them. That sparked our initial interest, and then we saw that Google is a major player,” Abel said in an interview with CNBC.

As of the end of the second quarter, Berkshire held nearly 106 million shares of Alphabet worth approximately $37.8 billion. Alphabet ranked third in Berkshire’s portfolio; the company’s largest equity holdings remained Apple and American Express. Buffett began investing Berkshire’s funds in Alphabet in 2025. Abel credited himself with the new investments, noting that the shares were acquired at a 6.5% discount to the market price, according to Reuters.

Abel also stated that Berkshire’s own energy business could benefit from the development of AI, as data centers require ever-increasing amounts of electricity to operate. According to his estimates, in Iowa—where Berkshire Hathaway Energy is based—data centers accounted for about 8% of the power grid’s load last year. “I’ve probably always held the firm view that energy will be the limiting factor,” Reuters quoted Abel as saying. “We still see this as a significant opportunity for Berkshire and Berkshire Hathaway Energy.”

With Buffett's support, Abel allocates Berkshire's capital and manages the company's cash reserves, which totaled $364.7 billion as of June 30, according to Reuters.

Berkshire announced its investment in Alphabet on June 1—the day after it agreed to pay $6.8 billion for homebuilder Taylor Morrison, according to Reuters. Abel expects Taylor Morrison to become a “very strong asset” in 5 to 10 years, as more and more people will seek to purchase their own homes, even if they postpone such purchases in the near term. Berkshire is also investing in shares of homebuilders Lennar and D.R. Horton.

Abel gave an interview to CNBC from Tokyo, where Berkshire holds stakes of more than 10% in the Japanese trading houses Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo, and in March acquired a 2.5% stake in the insurance company Tokio Marine as part of a strategic partnership. Berkshire intends to maintain its investments in the trading houses for “many decades” and would be happy to strike a deal with Tokio Marine, Abel said.

He declined to comment on a Financial Times report published on August 25 stating that Australian insurers Suncorp and Insurance Australia Group may be viewed by Tokio Marine as potential acquisition targets.

Abel flew to Tokyo after celebrating Buffett’s 96th birthday on Sunday alongside the legendary investor and his family, according to Reuters. Buffett used to take such trips on his own; his last visit to Japan was in 2023. “Warren definitely really likes Japanese investments,” Abel said. “It wasn’t easy for him to see me go to Tokyo without him.”

This article was AI-translated and verified by a human editor