About Half of Warren Buffet’s Investment Portfolio Is In AI Stocks

The investing legend is consolidating his stock funds into three major artificial intelligence stocks.

Warren Buffett’s Berkshire Hathaway investment portfolio is something to see.

The portfolio holds an asset value of $373 billion, which is approximately the same cash value as the EV manufacturing giant Tesla or the amount of profits recorded by the oil and gas sector in 2022.

The portfolio has 0% turnover and has consistently reported market-beating investment returns since it rolled out in 1965, after a review of the portfolio’s U.S. Securities and Exchange Commission’s 13f filings.

Put it this way. A $100 investment in the Berkshire Hathaway portfolio in 1965 would be worth $3.7 billion today. Comparatively, $100 invested in the S&P 500 in 1965 would have yielded only $24,700 today.

The newest wrinkle? Buffett now has a total of 50.75% of the fund in a handful of artificial intelligence stocks, according to the investment platform The Motley Fool.

Historically, Buffett’s investment strategy is of the strong “buy and hold” variety, where value is king and sector hunting is for suckers.

“Buffett certainly doesn’t chase the latest stock market trends, even those as strong as artificial intelligence, which whipped investors into a frenzy throughout 2023,” The Motley Fool reports. “That said, Berkshire does own several AI stocks, even if AI isn’t the reason Buffett and his team originally purchased them.”

The titanic trio includes Snowflake, a cloud computing giant, technology device giant Apple, and e-commerce retail kingpin Amazon. Each company has made massive investments in AI and leans into the technology in its way and the inclusion of all three major AI players is top-heavy toward one of the stocks.

Warren Buffett’s “AI Three”

Snowflake: (0.30% of portfolio). Introduced in 2018, Snowflake’s Data Cloud helps large, complex organizations “aggregate their data from different cloud providers” so it’s all in one place for maximum visibility. “From there, companies can use powerful analytics tools to draw valuable insights from the data,” The Fool notes.

Amazon: (0.41% of portfolio). From using AI to steer customers to goods they’re likely to buy to investing $4 billion into Anthropic, an emerging AI powerhouse (Amazon Web Services will become Anthropic’s primary cloud computing provider), Amazon is taking major steps into the AI ring.

Amazon is focused on delivering the widest possible range of AI products and services to businesses through its cloud computing arm, Amazon Web Services (AWS),” The Motley Fool states. “The company has already launched its own data center chips, Trainium and Inferentia, which are designed to compete with Nvidia. “ Plus, AWS offers businesses a growing number of large language models to accelerate the development of AI applications.”

Apple: (50.04% of portfolio). Apple comprises over half of the Berkshire Hathaway portfolio, and that position is currently valued at $156.7 billion. Apple may own its legendary status in smartphones and laptops, but it’s now using AI to power the performance of all its hardware products.

“AI powers the autocorrect feature on all Apple keyboards, and the Siri voice assistant,” The Motley Fool notes. “Apple Music also relies on AI to learn what listeners like, so it can feed them more of that content to keep them engaged.”

Toss into the mix Apple’s new A17 Pro chip (used in the new Apple 15 iPhone) and the company’s new AI models and generative AI tools, and it’s clear that Apple sees AI as a centerpiece going forward.

Whether he admits it or not, so does, Warren Buffett, too.

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