Warren Buffett's Berkshire Hathaway portfolio has 35% invested in AI stocks, potentially bringing significant profits

From Nasdaq: 2024-12-25 05:34:00

Warren Buffett’s Berkshire Hathaway has seen a compound annual return of 19.8% since 1965, outperforming the S&P 500 by a wide margin. Buffett’s investing strategy focuses on steady growth, profitability, and shareholder-friendly practices, avoiding chasing trends like AI.

Three stocks in Berkshire’s portfolio are innovating with AI:
1. Amazon (0.8% of portfolio): Using AI in fulfillment centers and cloud computing with AWS.
2. Coca-Cola (8.4% of portfolio): Utilizing AI in marketing campaigns and to predict future product flavors.
3. Apple (25.8% of portfolio): Developing advanced AI features like Apple Intelligence and ChatGPT integration with Siri.

Berkshire has invested in these companies, showing potential for significant returns if their AI strategies succeed. Buffett’s stake in Coca-Cola, Amazon, and Apple could bring substantial profits in the long run.

Despite concerns about market valuation, Apple remains Berkshire’s largest holding. Apple’s AI initiatives could enhance customer experience and drive revenue growth, offering potential benefits to Berkshire’s investment.



Read more at Nasdaq: 35% of Warren Buffett’s $296 Billion Portfolio Is Invested in 3 Artificial Intelligence (AI) Stocks