Warren Buffett's Successor, Greg Abel, Sees Multiple Ways for Berkshire Hathaway to Profit From Opportunities in Artificial Intelligence
Key Points
Berkshire CEO Greg Abel sees energy companies as playing crucial roles in the development of data centers.
The company invested in Alphabet last year and has grown its position since then.
Previous CEO Warren Buffett took a more cautious approach to tech.
Greg Abel took over as CEO of Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB) at the start of 2026. Warren Buffett led the business for decades, achieving stellar returns for shareholders, all while not hopping on the latest trends in tech and being generally very cautious when it comes to investing in those types of businesses.
That's why what's happening under Abel is so noteworthy. It's not that Abel is taking on significantly more risk, but he's clearly looking to artificial intelligence (AI) as a compelling growth opportunity for Berkshire to pursue. In fact, Abel sees multiple ways his company can benefit from AI's potential growth.
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Abel sees opportunities in both tech and energy
Abel isn't shy about talking about AI and, in fact, appears not only receptive to its potential but is also more than willing to focus on companies with great opportunities in that area. It's a striking difference from Buffett, who didn't appear as excited. Abel may simply be more comfortable with AI and know more about it, and thus, it may be an example of that subject falling within his circle of competence; Buffett has typically avoided areas that he is largely unfamiliar with.
Buffett, did, however, claim to start the company's position in tech giant Alphabet last year. Abel has added on to it. But it's not only tech that is an opportunity for Berkshire here. The company's new CEO astutely notes the potential for energy stocks as well, recognizing the challenges that can come with developing data centers: "I've sort of always had a strong view that energy would be the constraint," he noted in a recent interview with CNBC.
This opens up the possibility that Berkshire may invest in more companies in both the tech and energy sectors, in order to take advantage of AI-related opportunities.
Berkshire looks to be in good hands under Abel
Buffett was a bit cautious as his time as Berkshire CEO came to an end last year, struggling to find good value stocks to buy. But with Abel, he doesn't appear nearly as hesitant, perhaps a sign that he recognizes greater value in AI and the latest tech opportunities. That's great news for investors who may have been craving more growth from Berkshire, and a greater openness to tech.
Berkshire remains disciplined in its approach to picking individual stocks, but with its CEO now embracing opportunities in AI, it may be an even better buy than before. Although the stock's returns are flat this year, it can still make for an incredible long-term investment.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Berkshire Hathaway. The Motley Fool has a disclosure policy.