On December 31, 2025, local time, renowned investor Warren Buffett officially retired from his position as CEO of the well-known investment firm Berkshire Hathaway (hereinafter referred to as "Berkshire"). The formal end of Buffett's career has once again focused market attention on the portfolio trajectory of this representative of value investing.
In November 2025, Berkshire Hathaway will release its third-quarter 13F report, which will be the last holdings report disclosed during Buffett's tenure. Among the holdings is Apple . Representing 22.69% of its overall holdings, it firmly holds the top spot in Berkshire Hathaway's stock portfolio. At the same time, Berkshire Hathaway made its first investment in Alphabet, Google's parent company, making it the tenth largest stock in the company's portfolio.
Warren Buffett, who once insisted on not investing in technology or internet companies he "did not understand," significantly increased his holdings in Google before retiring. In my opinion, this offers us two insights.
On the one hand, from initially avoiding technology stocks to later opportunistic investment, and then to the recent changes in holdings, Buffett has used real money to clarify the misconception that "value investing and technology stocks are inherently opposed."
Objectively speaking, for a period of time, the uncertain profit models, blurred "moats," and over-reliance on future product value faced by early-stage technology and internet companies were incompatible with Buffett's value investing principles. His early wait-and-see approach to such companies allowed him to successfully avoid the sharp decline in technology stock market value caused by the US internet bubble. At that time, some argued that value investing, which adheres to "long-termism," was incompatible with the "rapidly changing" nature of technology stocks.
However, the changes in Berkshire Hathaway's investment portfolio structure over the past 20 years actually refute this view. In the fourth quarter of 2006, Berkshire Hathaway's largest single holding was Coca-Cola. Procter & Gamble Their combined share reached 12.18%, bringing the total to over 30%, with technology stocks almost entirely absent. However, starting in 2011, Buffett gradually changed his cautious attitude towards technology stocks, making his first purchase of IBM. In 2017, Buffett and Charlie Munger even publicly admitted that they had missed out on buying Google and Amazon. He saw an investment opportunity and began buying large amounts of Apple stock, at one point making up as much as 51% of his portfolio.
It's clear that Buffett's value investing philosophy is not incompatible with tech stocks. For example, Apple's strong customer loyalty, predictable and sustainable profits, and high competitive barriers all meet the core criteria of value investing, which is why Buffett has chosen to hold a significant stake. Meanwhile, his recent investment in Alphabet, a more "pure" tech stock, aligns with value investing logic. Alphabet boasts a diversified profit model covering core sectors such as advertising, cloud services, and search, creating a strong competitive advantage. Its artificial intelligence... The high degree of certainty in business growth is also a factor that has won Buffett's favor.
On the other hand, Buffett's portfolio adjustments before his retirement set a benchmark for value investing in the AI era, redefined the meaning of "moat" in the technology sector, and placed higher demands on the development of technology companies.
Undoubtedly, with the AI wave sweeping the globe, tech stocks have become the focus of market attention. How can traditional value investing adapt to the new AI era? Warren Buffett's portfolio adjustments before his retirement provide an answer.
Even with faster technological iterations and more complex competition, the core of true value investing remains unchanged. The investment value of technology companies lies in their deep "moats" of technology and brand, predictable profit models, and excellent corporate management.
Therefore, for global investors, Buffett's portfolio adjustments provide a model for value investing and "technology adaptation" in the AI era. Investors may no longer be concerned about "whether it is a technology stock" but instead return to the essence of predictable cash flow, strong competitive barriers, and excellent management models, seeking the enduring core value in the ever-evolving technological revolution.
(Source: Securities Times) daily)
