Warren Buffett will step down as Berkshire Hathaway CEO at year-end but will remain chairman and has groomed Greg Abel to ensure strategic continuity; under Buffett’s 59-year stewardship a $500 stake in 1965 would now be roughly $25.2 million versus $196,656 in the S&P 500. Berkshire’s portfolio has moved to selectively embrace three of the “Magnificent Seven” tech leaders—Apple (21% of the $309bn equity portfolio), Alphabet (1.6%, a nearly $5bn Q3 purchase) and Amazon (0.8%)—which together account for 23.4% of its holdings; key data points cited include AWS generating $33bn in Q3 revenue (+20% YoY) and Amazon’s ~$125bn AI data-center spend this year with a $200bn order backlog, Alphabet Cloud revenue growth of 34% in Q3 and a P/E of 27.2, and Apple’s ongoing device-driven AI rollout with 2.35bn active devices after Berkshire trimmed what had been roughly half of the portfolio. The moves signal Buffett’s selective adoption of AI-exposed, high-quality tech assets while retaining a value-oriented framework and leadership continuity under Abel.
Warren Buffett will relinquish the CEO role at Berkshire Hathaway at year-end but will remain chairman and has groomed Greg Abel to ensure continuity; the article highlights Berkshire's long-term outperformance under Buffett (a $500 stake in 1965 would be worth ~$25.2 million versus ~$196,656 in the S&P 500). This leadership change is positioned as orderly rather than disruptive given Abel's preparation and Buffett's ongoing chairmanship. Berkshire's $309 billion equity portfolio now includes three "Magnificent Seven" tech names that total 23.4% of its holdings: Apple at 21%, Alphabet at 1.6% (a nearly $5 billion Q3 purchase), and Amazon at 0.8%. Berkshire materially trimmed Apple from roughly half the portfolio earlier in 2024 after investing ~$38 billion between 2016–2023 and realizing a peak position value above $170 billion. The cited operating data underpinning these positions are AWS revenue of $33 billion in Q3 (+20% year-over-year), Amazon's ~$125 billion AI data-center buildout this year and a reported $200 billion AWS order backlog, Alphabet Cloud revenue growth of 34% in Q3 with shares trading at a P/E of 27.2, and Apple’s 2.35 billion active devices alongside a stronger-than-expected iPhone 17 upgrade cycle. Together these facts indicate Berkshire is selectively adopting AI-exposed, high-quality tech assets within a value framework, but the large remaining Apple concentration and the management transition are points that could prompt further portfolio rebalancing or volatility.
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