Tech investor Ross Gerber has publicly criticized Warren Buffett for selling nearly 70% of Berkshire Hathaway’s Apple stake over the past 18 months, calling the move “dumb” and arguing that Buffett was wrong to exit such a powerful long-term asset. Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, said the AI boom is fundamentally different from the dot-com bubble and that Apple remains a cornerstone of future growth. Gerber emphasized that the current surge in tech valuations, particularly for the Magnificent Seven stocks, is not driven by speculation but by real, massive profitability. He pointed to Alphabet’s over $100 billion in net income last year and Nvidia’s more than 50% year-over-year profit growth as evidence that these companies are delivering unprecedented earnings. “Their profitability is just insane,” he said, adding that high valuations are justified by business fundamentals, not hype. He contrasted today’s AI-driven growth with the smartphone era, which he described as “counter useful” and a source of distraction rather than productivity. In his view, AI has transformative potential to boost efficiency and earnings across industries, unlike past tech trends that failed to deliver sustained economic value. Gerber also criticized Berkshire Hathaway’s overall portfolio, calling it a “portfolio of the past.” He noted that key holdings like BNSF Railway have underperformed in recent years and that Buffett’s investment in Kraft Heinz—now splitting into two companies—was a misstep, especially given shifting consumer preferences toward healthier products and the aggressive cost-cutting tactics of 3G Capital, the private equity firm behind the deal. He argued that simply cutting jobs doesn’t create lasting value and that Buffett’s strategy of focusing on established, slow-growth businesses is no longer aligned with the future of innovation. “Berkshire had the perfect portfolio of the past, but it's definitely not the perfect portfolio of the future,” Gerber said, adding that incoming CEO Greg Abel and his team face a significant challenge in modernizing the company’s holdings. Despite his criticism, Gerber acknowledged Buffett’s legacy. He recalled meeting Buffett during the 2008 financial crisis and said he was struck by the investor’s seriousness and lack of humor. “He looked at me like, ‘you're out of your mind,’ and got in the car and left,” Gerber said. He added that Buffett plays the role of a friendly, old-school investor well—but in reality, he’s “one of the most cutthroat businessmen of all time.” Gerber praised Buffett’s decision to retire at the top of his game, having set up his successors with strong leadership and financial resources. “There's something great about those who recognize it's time to leave gracefully,” he said. “I think Buffett's done a great job of that.”