Warren Buffett, the famous CEO of Berkshire Hathaway, is largely renowned for having achieved remarkable returns that averaged 19.8% annually over the past 57 years. Primarily known for his shrewd investing, the Berkshire Hathaway investment portfolio has been showcased by its 50-47% influence of Apple stock along with various other AI-related stocks. In this article, you will find a guide to AI investing and a look at three AI stocks Warren Buffett is betting on.
Apple is the primary AI stock that Buffett has bought into and currently, it makes up almost a half of the Berkshire Hathaway investment portfolio, trading at around $171 per share. In 2023, Buffett said at the Berkshire shareholders meeting that Apple is a “better business than any [Berkshire Hathaway] owns”, due to its consumer product value, AI-based feature capabilities, like the iPhone crash detection, and its electrocardiogram feature on the Apple Watch.
Amazon is another tech company the Oracle of Omaha is investing in, but only to the value of 0.4% in the portfolio, making it a $1.2 billion investment. Initially bought by one of Buffett’s portfolio managers, he later stated that he was wrong not to buy it earlier. Despite Amazon not quite a classic Buffett stock, it does have its competitive advantages, effective customers service levels, and excellent management. Amazon has also used its Bedrock platform to apply machine learning to solve real-world business problems and integrate AI into its products.
Alongside these two major competitors, Berkshire Hathaway also has investments in Snowflake at 0.3%. This company provides cloud-data warehousing services, such as storing data and providing data analysis for major cloud platforms such as Amazon Web Services, Google Cloud Platform, and Microsoft Azure. This could facilitate Snowflake’s future prospects for explosive growth and shed light as to why Berkshire Hathaway bought the shares.
This guide to AI investing aims to provide an understanding of Warren Buffett’s investments in the sector. Apple and Amazon are two of the most popular AI stocks, and they make up around half of the entire Berkshire Hathaway investment portfolio. The company also holds stakes in Snowflake, which is a recent hot IPO and is sure to experience rapid growth in the near future. By understanding Buffett’s investments, it is possible to learn and understand the AI industry better and start investing in the right stocks.
