In the long arc of how people put savings to work, every new technology arrives wrapped in promises, and investors must decide whether to chase the wrapping or the underlying businesses. On a late October day in 2026, The Motley Fool published an opinion piece suggesting that Berkshire Hathaway's stakes in Apple and Alphabet offer a steadier way to hold artificial intelligence: companies whose profits rest on established customers and brands, with AI as an added current rather than the single engine. The argument draws on Warren Buffett's long-held preference for durable advantages over specul
Buffett-Style AI Picks: Why Apple and Alphabet Don't Need AI to Win
The biggest risk isn't that AI fails, but that investors overestimate the payoff
Mark
The piece says Apple and Alphabet don't need AI to win. Why does that matter right now?
Mimi
Because the worry it starts from is that AI spending, hundreds of billions a year on data centers and chips, might not pay off. If your stock only works when AI works, you're exposed. The author says these two aren't.
Mark
What's his case for Apple specifically?
Mimi
Services. App Store, iCloud, Apple Music, AppleCare, recurring revenue from billions of devices. Customers don't have to buy a new iPhone each year for Apple to earn more.
Luke
Worth noting that Berkshire has trimmed Apple over time. The piece mentions it, but it's a bit awkward for a story about conviction. Apple is still the largest holding, but the direction of travel is down.
Mimi
Fair. The author reads the continued stake as a sign of appeal. That's his interpretation.
Mark
And Alphabet?
Mimi
Berkshire disclosed it in November 2025 and has added since. Gemini is going into Search, Workspace, Android, and Cloud, but the businesses already existed.
Luke
I'd flag that the Buffett link is the author's framing. Nothing here quotes Buffett or Berkshire explaining why they bought either stock. It's inference from his general philosophy.
Mark
So what's actually confirmed?
Luke
The holdings and dates, and Alphabet's price data: $320.21 close, a $3.92 trillion market cap. The claim these are forever stocks is opinion, and the piece offers no valuation analysis or return figures.
Mimi
Which is why it reads best as an argument about risk, not a forecast.
The Pulse
- Technology giants are pouring hundreds of billions of dollars into data centers and chips, and the question of whether that spending will pay back hangs over the AI boom.
- Alphabet's shares sit near $320, well off their year high of about $408, as markets weigh whether AI investment will justify its cost.
- The author steers investors toward Apple and Alphabet, arguing their core businesses earn money whether or not AI succeeds.
- Apple's Services revenue and buybacks, and Alphabet's ad and cloud franchises, anchor the case, though the piece is opinion, not a Berkshire statement.
In the long arc of how people put savings to work, every new technology arrives wrapped in promises, and investors must decide whether to chase the wrapping or the underlying businesses. On a late October day in 2026, The Motley Fool published an opinion piece suggesting that Berkshire Hathaway's stakes in Apple and Alphabet offer a steadier way to hold artificial intelligence: companies whose profits rest on established customers and brands, with AI as an added current rather than the single engine. The argument draws on Warren Buffett's long-held preference for durable advantages over speculation, and it asks readers to weigh that view against Berkshire's own filings and the uncertain returns of enormous AI spending.
On Friday, October 23, 2026, Alphabet's Class A shares closed at $320.21 on the Nasdaq, down about 1.2 percent, with a market value near $3.92 trillion. The stock has swung between $264 and $408 over the past year. That backdrop sets the stage for a Motley Fool opinion piece, published two days later, arguing that Berkshire Hathaway's holdings in Apple and Alphabet suit investors who want exposure to artificial intelligence without staking everything on it.
The author begins with a worry many long-term investors share: technology companies are spending hundreds of billions a year on data centers, semiconductors, and power, and if that spending slows or fails to pay back, what then? His answer leans on Buffett's method of buying businesses with durable advantages, predictable earnings, and sound capital management, rather than chasing the next breakthrough.
Apple, Berkshire's largest holding, was first bought in 2016, well before generative AI became the market's favorite theme. The piece credits Buffett with seeing a loyal customer base and an ecosystem that keeps people attached. Services, spanning the App Store, iCloud, and Apple Music, generates recurring revenue from a vast installed base, so growth does not depend on annual iPhone upgrades. Berkshire has trimmed its stake over time but kept Apple as its biggest position.
Alphabet is newer: Berkshire disclosed it in November 2025 and has added to it since. The author sees AI as a growing driver as Gemini is built into Search, Workspace, Android, and Google Cloud, yet insists Alphabet is not a pure AI company. Search, YouTube, and cloud were already large, and AI enhances them.
The core claim is that the greater danger for AI investors is overestimating how much each company will earn from the technology, not that the technology itself fails. History offers many transformative innovations that did not reward every participant. The author concludes both stocks are suited to long-term holding, with AI as a tailwind. Yet this is an opinion column drawing on Buffett's general philosophy, not a statement from Berkshire, and readers are encouraged to check the thesis against Berkshire's filings and the eventual payoff from AI spending.
On Friday, October 23, 2026, Alphabet's Class A shares closed at $320.21, down $4.01, or 1.24 percent, on the Nasdaq. The company's market value stood at roughly $3.92 trillion. The shares have traded between $264.28 and $408.61 over the past year. That backdrop frames an opinion piece in The Motley Fool, published October 25, which argues that two of Berkshire Hathaway's holdings, Apple and Alphabet, are suited to investors who want exposure to artificial intelligence without betting everything on it.
The question the author starts from is whether the AI boom can keep its momentum. Technology companies are spending hundreds of billions of dollars a year on data centers, semiconductors, and power infrastructure. The author asks what happens if that spending slows, or if businesses find their investments are not paying back as expected. For people who buy stocks to hold for decades, he says, those are serious questions.
His answer leans on Warren Buffett's record. Buffett built his fortune by picking companies with durable competitive advantages, predictable earnings, and managers who allocate capital well, the piece says. He prefers businesses that do well across economic cycles over speculation on the next breakthrough. By that standard, the author says, Apple and Alphabet fit well, because both can benefit from AI while their investment cases do not hinge on it.
On Apple, the piece notes that Berkshire first invested in 2016, long before generative AI became Wall Street's favorite theme. The author says Buffett saw that Apple was more than a hardware maker: it had a loyal customer base, a strong brand, and an ecosystem that kept customers attached. Buffett calls that kind of lasting advantage an economic moat. The Services segment, which includes the App Store, iCloud, Apple Music, and AppleCare, produces recurring revenue from billions of devices, so Apple does not need customers to buy a new iPhone every year. AI could strengthen products and encourage upgrades, the author writes, but the hardware business, services, and brand already support substantial earnings and cash flow. Apple also returns money through buybacks and dividends. Berkshire has reduced its stake over time, but Apple remains its largest holding.
Alphabet is the newer position. Berkshire first disclosed it in November 2025 and has added to it over the past year, according to the piece. The company owns Google and YouTube, both with highly profitable advertising businesses. The author describes AI as an increasingly important growth driver as Alphabet builds its Gemini models into Search, Workspace, Android, and Google Cloud. Even so, he stresses that Alphabet is not a pure AI company. Search, YouTube, subscriptions, and cloud computing were already large businesses with established customers, and AI enhances them rather than requiring a new platform.
The author's central claim is that the biggest risk for AI investors is not that the technology fails, but that investors overestimate how much each company will earn from it. He points out that history has many promising technologies that changed society without producing attractive returns for every company involved. Apple and Alphabet, in his view, have diversified models, recognizable brands, significant advantages, and recurring cash flow. They also have the financial flexibility to invest in AI without relying on it for survival.
His conclusion is that both are prime examples of AI stocks to buy and hold forever, with AI as an added tailwind to businesses that already grow. This is an opinion column, not a Berkshire statement, and it argues from Buffett's general philosophy rather than from any comment by him on these holdings. Readers who want to test the thesis can compare it with Berkshire's regulatory filings and with how the large AI spending plans play out.
Notable Quotes
Apple and Alphabet are prime examples of AI stocks to buy and hold forever, with AI as an additional tailwind.— Motley Fool author (opinion)
Want the full story?
Read the original at The Motley Fool ↗
Technology