The Motley Fool·2025-12-11 07:05Core Viewpoint - The article suggests investing equally in three companies—Alphabet, Amazon, and Apple—to capitalize on the growth of artificial intelligence, highlighting their strong market positions and financial performance. Group 1: Alphabet - Berkshire Hathaway acquired nearly 18 million shares of Alphabet, valued at over $5.5 billion, in the third quarter [6] - Alphabet holds a dominant 89% market share in internet search and 71% in web browsers, contributing to its advertising revenue of $74.1 billion in the third quarter [7] - Google Cloud revenue increased by 33% to $15.1 billion year-over-year, driven by the demand for cloud services to support AI programs [8] - A potential multi-billion-dollar deal with Meta Platforms for Google tensor processing units could further enhance Alphabet's AI capabilities [9] Group 2: Amazon - Berkshire Hathaway's position in Amazon consists of 10 million shares, valued at $2.2 billion, significantly less than its investment in Alphabet [10] - Amazon commands a 40% market share in U.S. e-commerce, generating $147.1 billion in revenue in the third quarter, but has a low profit margin of 4% [12] - Amazon Web Services (AWS) reported $33 billion in revenue for the third quarter, up 20% year-over-year, with a profit margin of 34% [14] Group 3: Apple - Berkshire Hathaway's largest holding is Apple, with 238.2 million shares valued at $66 billion, making up over 21% of its portfolio [15] - Apple experienced an 8% revenue increase to $102.5 billion in its fiscal fourth quarter, benefiting from customer loyalty and a diverse ecosystem [19] - The company is investing in AI technology, which is expected to enhance its product offerings and maintain its status as a strong investment [19] Group 4: Investment Strategy - A suggested investment of $10,000 split equally among the three companies would result in 10 shares of Alphabet, 14 shares of Amazon, and 12 shares of Apple, aligning with Buffett's investment philosophy [20]