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Berkshire Hathaway (BRK.A, BRK.B) CEO Greg Abel isn’t chasing the AI trade just because everyone else is.
In his first annual meeting as Berkshire’s top honcho and Warren Buffett’s successor, he said that the company isn’t treating tech spending or tech stocks as a momentum game.
That’s the opposite of what we’ve seen transpire over the past couple of years, where the “Magnificent Seven” stocks have attracted billions in capital.
Investors have been incessant in pouring money into tech giants pursuing their respective AI-first visions.
AI leaders, including Alphabet, Amazon, Meta, and Microsoft, are on track to spend a staggering $700 billion in combined capex this year, up substantially from $410 billion in 2025.
In contrast to what the market has been about lately, Abel’s message is about restraint.
Berkshire is synonymous with discipline, and clearly, Abel isn’t looking to abandon that mantra anytime soon.
That stance also carries a ton of weight because Berkshire is now sitting on a record $397.4 billion cash pile.
It has the firepower to make massive tech stock bets and lean aggressively into AI.
Instead, Abel drew a different line at Berkshire’s 2026 annual meeting on May 2.
“We're going to be a builder of technology, rather than just a buyer of technology,” he told shareholders.
“It has to be additive to our businesses. We're not going to have AI just to have AI.”
Technology should complement, not be a fix-on: Abel noted that tech needs to truly add value to a business, rather than simply serve as a sticker signaling AI use.
Buyer mindset versus builder mindset: Berkshire is looking to go in-house with AI solutions, such as the predictive maintenance effort at BNSF Railway, rather than leaving innovation to others.
The rule of capital discipline is unbreakable: "Capital discipline is the rule," said Abel, who has north of $350 billion in cash and short-term securities at his disposal, "which we will be acting decisively upon when there is a dislocation, and the price is right.
Conglomerate structure is a feature, not a bug: Berkshire is structured as a decentralized organization to deploy technology without the "bloated costs" seen in traditional conglomerates.
Berkshire’s earnings performance lately points to a strong track record of consistent EPS beats, though revenue growth has been uneven across quarters.
FQ1 2026: EPS of $5.26, beating estimates by $0.21; revenue of $92.07 billion, year-over-year growth of 2.6%.
FQ4 2025: EPS of $4.73, missing estimates by $0.44.
FQ3 2025: EPS of $6.25, beating estimates by $0.52; revenue of $94.97 billion, missing estimates by $2 billion, with year-over-year growth of 2.13%.
FQ2 2025: EPS of $5.17, beating estimates by $0.14; revenue of $92.50 billion, beating estimates by $10.29 billion, despite a year-over-year decline of 1.22%. Source: Seeking Alpha.
Berkshire Hathaway’s Q1 2026 earnings smasher effectively reinforced Abel’s message with hard numbers.
Front and center was its operating earnings that surged 18% to $11.35 billion, led by stronger underwriting performance at GEICO and improved rail efficiency at BNSF.
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As mentioned earlier, Berkshire’s cash position reached a record $397.4 billion.
On top of that, operating cash flow topped $10.4 billion, while share repurchases totaled only $234 million, which remains relatively small relative to the balance sheet's size, showing a continued emphasis on disciplined capital allocation.
Tesla: 3-month change: +4.31%; year-to-date change: -4.65%; YTD high: $458.34
Nvidia: 3-month change: +16.23%; year-to-date change: +15.55%; YTD high: $217.80
Apple: 3-month change: +5.10%; year-to-date change: +7.52%; YTD high: $294.71
Alphabet Class A: 3-month change: +23.44%; year-to-date change: +27.33%; YTD high: $401.37
Alphabet Class C: 3-month change: +22.40%; year-to-date change: +26%; YTD high: $398.
Amazon: 3-month change: +29.62%; year-to-date change: +18.11%; YTD high: $278.56
Microsoft: 3-month change: +3.68%; year-to-date change: -14%; YTD high: $489.70
Meta Platforms: 3-month change: -8.19%; year-to-date change: -8%; YTD high: $744. Source: Barchart.
Abel essentially drew a line between useful tech tools and expensive hype.
“The entire Berkshire franchise is touched by it,” he said, noting that tech is actually playing a key role across the company’s businesses.
For instance, its insurance units study predictive analytics, while BNSF uses data to consistently improve rail operations.
Nevertheless, Berkshire hasn’t by any means rushed into major AI face-lift projects or related investments just because the market’s been obsessed with the technology.
We can see that discipline from BNSF and its most recent report.
For instance, BNSF moved 2.408 million cars and units in Q1, up 2.2% from a year earlier, while operating margins improved on the back of higher volumes, pricing gains and better productivity.
Tariffs and geopolitical pressure were also cited as headwinds, especially in areas like chemicals and energy, but Berkshire’s broader approach has not changed.
Related: Goldman Sachs sets jaw-dropping AMD stock price target after earnings
This story was originally published by TheStreet on May 10, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.