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Buffett Era Ends at Berkshire Hathaway: Tech Holdings Scaled Back

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  Published in Science and Technology on Tuesday, February 17th 2026 at 18:48 GMT by Investopedia
      Locales: Nebraska, Washington, California, UNITED STATES

Tuesday, February 17th, 2026 - Warren Buffett officially concluded his tenure as CEO of Berkshire Hathaway, and the final quarterly filings under his leadership reveal a significant shift in the company's technology investment strategy. While Berkshire remains heavily invested in tech giants Apple and Alphabet, substantial reductions in holdings - revealed in the recently published 13F filing for the third quarter of 2025 - have sent ripples through the market and sparked intense speculation about the future direction of the conglomerate.

The data indicates Berkshire Hathaway trimmed its Apple (AAPL) stake by approximately 13%, shedding 6.9 million shares. Despite this reduction, the company remains Apple's largest public shareholder with a substantial 1.57 billion shares still held. Simultaneously, Berkshire decreased its Alphabet (GOOGL) position by around 19%, offloading 6.6 million shares, leaving a remaining stake of approximately 150.5 million shares.

A Departure from Past Strategy?

For years, Warren Buffett was largely known for avoiding technology stocks, famously stating he didn't fully understand the business models. However, his more recent, and highly publicized, investments in Apple represented a clear evolution of his thinking. He repeatedly praised Apple's brand loyalty, pricing power, and consistent profitability, referring to it as a "consumer castle." This is what makes the recent sales particularly noteworthy. While trimming a portfolio is a normal practice, the scale of the reduction in both Apple and Alphabet, occurring right before his departure, raises eyebrows.

Experts suggest several possible explanations. One primary theory centers on Berkshire's increasing focus on value investing. Despite strong performance, Apple and Alphabet's valuations have remained relatively high. Buffett, known for seeking undervalued assets with long-term growth potential, might believe that opportunities for significant gains in these stocks have diminished. The company could be reallocating capital to sectors it perceives as more undervalued, such as energy, financials, or infrastructure - areas where Berkshire already maintains significant holdings.

Another potential driver is the impending leadership transition. With Greg Abel now at the helm, Berkshire may be proactively reshaping its portfolio to align with Abel's investment philosophy. While Buffett has groomed Abel for years, subtle differences in approach are inevitable. Abel might favor a more diversified approach or be less inclined to concentrate investments in a handful of mega-cap tech companies.

Market Impact and Investor Reaction

The initial market reaction was muted but observant. Apple's stock experienced a slight dip immediately following the announcement, but a major sell-off did not materialize. This suggests investors aren't panicking, but are instead carefully analyzing Berkshire's moves for clues about the company's long-term outlook. The fact that Berkshire still holds substantial positions in both Apple and Alphabet likely mitigated broader market concerns.

Financial analysts are now intensely scrutinizing Berkshire's rationale. Some believe the sales are a signal that Buffett anticipates a potential market correction or economic slowdown. Others suggest it's simply a matter of profit-taking after substantial gains. The performance of these tech giants has been strong over the past few years, and Berkshire may be locking in profits to deploy capital elsewhere.

Looking Ahead: What Does This Mean for Berkshire?

Buffett's final quarter as CEO marks a pivotal moment for Berkshire Hathaway. The decision to reduce Apple and Alphabet holdings suggests a potential recalibration of the company's investment strategy. Investors will be keenly watching how Abel manages the portfolio going forward and whether he continues to pare back tech investments or pursues alternative growth opportunities.

The move also highlights the challenges of managing a conglomerate of Berkshire's size. Maintaining consistent returns requires continuous adaptation and the ability to identify emerging trends. While Buffett's legacy is firmly established, the next chapter of Berkshire Hathaway will be defined by Abel's ability to navigate a rapidly changing economic and technological landscape. The coming quarters will reveal whether this portfolio shift is a tactical adjustment or a fundamental change in Berkshire's investment philosophy. It's a sign that even the most iconic investment firms must evolve to remain competitive in the long run. The sales aren't necessarily negative about Apple or Alphabet's prospects, but rather indicative of a strategic re-evaluation under new leadership.