Berkshire Hathaway has begun to pivot under new CEO Greg Abel, raising questions about the company’s future direction as it transitions from the stewardship of legendary investor Warren Buffett. While Berkshire has historically adhered to a strict value investing philosophy, market observers are speculating whether Abel will adopt a more aggressive stance, particularly in the burgeoning field of artificial intelligence (AI).
Already, Berkshire has made strategic investments in AI-related companies, including Amazon and Alphabet. The company added Alphabet to its portfolio in the third quarter of 2025, which has already proven lucrative. This has led to speculation about whether Berkshire might increase its stake in Amazon, given that it has held 10 million shares since 2019, though these shares account for only 0.8% of its overall investment portfolio.
Amazon is currently experiencing a resurgence, reporting a 13% year-over-year increase in net sales, reaching $180 billion. Notably, the company’s cloud computing segment, Amazon Web Services (AWS), generates significant operating profit, contributing 66% of total operating profit despite accounting for just 18% of total sales. As AWS continues to gain momentum, expectations for Amazon’s profitability in 2026 remain high, raising the question of whether Berkshire will choose to invest further.
Buffett’s investment philosophy has focused on acquiring exceptional companies at reasonable prices. However, the departure of Todd Combs, a portfolio manager known for his tech-savvy approach, could influence future investment decisions. Combs accepted a position at JPMorgan Chase, leaving Ted Weschler as a potential decision-maker regarding tech investments. If Weschler was behind Berkshire’s initial purchase of Amazon shares, the company could remain active in pursuing additional shares.
Valuation metrics suggest that Amazon may currently be undervalued. The operating price-to-earnings ratio is a more accurate measure of Amazon’s valuation than the standard P/E ratio due to the impact of its significant investment portfolio. Currently, Amazon is trading at the lower end of its recent valuation range, which may align with Berkshire’s strategy of capitalizing on favorable pricing.
As Berkshire navigates this leadership transition, the investment community is closely watching how Greg Abel will allocate the substantial cash reserves built up by Buffett during his tenure. With growing interest in AI technologies across multiple sectors, the potential for Berkshire to intensify its investments in this area is significant. The strategy that Abel chooses could not only reshape Berkshire’s portfolio but also signal a broader shift in investment priorities for one of the most storied conglomerates in the world.
As the landscape of technology continues to evolve, Berkshire’s decisions could have profound implications, not only for its shareholders but also for the future trajectory of AI investment strategies. The coming months will likely reveal whether the company will embrace a more modern investment approach, setting a new course under Abel’s leadership.
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