Warren Buffett Sold $3.2 Billion of Apple and Piled $4.3 Billion Into This Hot Artificial Intelligence (AI) Stock | The Motley Fool

"The release of Berkshire Hathaway's quarterly 13F filing with the Securities and Exchange Commission is always an exciting moment for Warren Buffett's followers. Berkshire continues to sell shares of Apple, which wasn't a big surprise. It sold nearly 42 million in the third quarter, or about $3.2 billion worth. The iPhone maker remains the largest holding in the conglomerate's equity portfolio, but instead of accounting for nearly half of it, which it did not too long ago, it now accounts for 21%."

"There was only one stock added to the portfolio in the third quarter, and it was definitely a surprise: Alphabet , parent company of Google. Berkshire bought almost 18 million shares, worth $4.3 billion, a small but not-insignificant position that accounts for 1.7% of the portfolio, about double Amazon's place in the portfolio. Let's check out how Alphabet fits into the Buffett model."

"Buffett loves companies that don't need to spend a lot of money to make a lot of money. Alphabet has a low-cost model with a platform that can handle increasing demand without heavy investments, and it has strong gross margins and operating margins. As Alphabet uses more artificial intelligence (AI) throughout its system, it's offering even more value for the millions of customers on its advertising platform, and revenue is increasing while AI is lifting more of the weight."

Berkshire Hathaway's quarterly 13F filing shows continued Apple share sales and one notable purchase: almost 18 million shares of Alphabet worth $4.3 billion. Apple remains the largest equity holding but has fallen to 21% of the portfolio after selling nearly 42 million shares. The Alphabet stake represents about 1.7% of the portfolio, roughly double Amazon's weighting. Alphabet exhibits high gross and operating margins, a low-cost scalable platform, and a dominant search-based economic moat. Increasing integration of artificial intelligence enhances ad-platform value and revenue, while management invests in AI and technology to maintain competitive advantage.

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