Berkshire Hathaway’s Greg Abel dismisses AI momentum investing, favoring tech that adds value to existing businesses over capex-driven bets.
Berkshire Hathaway CEO Greg Abel signaled a cautious approach to AI and tech stocks, diverging from the market’s aggressive capital deployment. Abel emphasized building technology internally rather than chasing momentum in high-capex AI plays, despite Berkshire’s $397.4 billion cash reserve.
Tech giants like Alphabet, Amazon, Meta, and Microsoft are projected to spend $700 billion on capex in 2026, up from $410 billion in 2025. Abel’s stance contrasts with the recent surge in AI-driven investments, particularly among the “Magnificent Seven” stocks.
Abel stated Berkshire will only adopt AI if it complements existing operations, rejecting speculative bets. The company’s disciplined approach underscores its long-term strategy amid record cash holdings.