Warren Buffett and his team at Berkshire Hathaway are known for investing in new sectors without overpaying for stocks. They have purchased AI stocks that also have strong business lines. Nearly 24% of Berkshire’s $305 billion equities portfolio is invested in just three of these stocks, including Apple.

Berkshire’s initial investment in Apple in 2016 grew to about 40% of its portfolio at one point. Apple has the qualities Buffett looks for in a stock: a strong brand, earnings power, and stock buybacks. Despite concerns about Apple’s AI strategy, the company is expected to benefit from integrating AI features into its products.

Berkshire recently acquired a stake in Alphabet, a popular pick among hedge funds. Despite legal challenges, Alphabet has emerged better and continues to innovate in AI with products like Google overviews and AI mode. The stock, trading at 30 times forward earnings, offers growth potential in AI and other strong businesses.

Amazon, another Berkshire investment, boasts a robust e-commerce business and the leading cloud service, AWS. AWS, with a 30% market share, is poised to benefit from the cloud migration trend. Trading at about 32 times forward earnings, Amazon remains a solid long-term investment despite its valuation.

Consider the top 10 stocks identified by the Motley Fool Stock Advisor team for potential high returns. Alphabet did not make the list, but past recommendations like Netflix and Nvidia have generated significant returns. Stock Advisor’s track record and community of individual investors make it a valuable resource for investment opportunities.

Read more at Yahoo Finance: 24% of Warren Buffett’s Portfolio is Invested in These 3 Artificial Intelligence (AI) Stocks