Warren Buffett's Berkshire Hathaway is managing a substantial portfolio valued at $291 billion, with a significant 32.4% allocated to four AI-focused stocks: Domino's Pizza, Amazon, Coca-Cola, and Apple.

Apple stands out as the largest holding in Berkshire's portfolio, comprising 21.2%, although Buffett has notably reduced his stake from a peak of 915 million shares to 300 million shares due to valuation concerns and potential issues regarding Apple's AI advancements.

In a notable shift from his traditionally cautious stance on tech investments, Buffett has allocated 22% of Berkshire's public stock holdings, valued at $279 billion, to major AI players Apple and Amazon.

Amazon is strategically positioned to benefit from the anticipated shift in IT spending from on-premises solutions to cloud services, potentially solidifying its status as a leader in sales and market capitalization.

Although Amazon represents a modest 0.8% of Berkshire's portfolio, it is recognized for its significant potential in AI, leading the cloud services market with a 30% share and committing over $100 billion to AI development in 2025.

Coca-Cola, making up 9.9% of Berkshire's portfolio, is investing $1.1 billion in AI initiatives by 2029, including the appointment of a head of generative AI to oversee its integration in marketing and product development.

Apple is cautiously integrating AI into its ecosystem, collaborating with OpenAI to enhance user experience while ensuring that its new features do not disrupt existing functionalities.

Domino's Pizza, which constitutes 0.4% of the portfolio, employs AI to enhance customer experience and operational efficiency, utilizing predictive algorithms for order preparation and customer feedback.

Buffett's long-term value investing strategy, which he has adhered to since 1965, emphasizes stability and strong management, allowing Berkshire to navigate the evolving tech landscape without chasing fleeting trends.

Overall, Berkshire Hathaway's investments in these companies illustrate a strategic approach to leveraging AI technologies while remaining true to Buffett's core principles of stability and long-term growth.

With a record cash reserve of $347 billion, Berkshire Hathaway is well-positioned for future investment opportunities, further enhancing its portfolio.