Warren Buffett warns on speculation while Berkshire boosts AI stake in Alphabet

Warren Buffett told CNBC that it is "hard to find value when everyone prefers to gamble," warning investors about the rise of short‑term betting and derivative trading that prioritize price moves over business fundamentals. He cautioned that high market valuations leave little room for error.

Berkshire Hathaway’s portfolio under new CEO Greg Abel is now heavily concentrated, with about 68% of its equity holdings in five companies: Apple, American Express, Coca‑Cola, Bank of America and Chevron. Buffett also confirmed that the $31 billion position in Alphabet (Google) was his own initiative, describing his earlier reluctance to invest in technology as a mistake. He highlighted Alphabet’s AI-driven growth, noting rapid revenue gains in Google Search and Cloud, and the company's full‑stack AI capabilities.

Berkshire retains a record cash balance of roughly $380‑$397 billion, giving it flexibility to act when attractive opportunities arise. Buffett also reflected on his long career, attributing much of his success to luck and structural advantages.