This Artificial Intelligence (AI) Stock Isn’t in Warren Buffett’s Portfolio — but It Follows His Rules

From Nasdaq: 2025-06-18 04:16:00

Warren Buffett plans to step down as CEO of Berkshire Hathaway by the end of 2025. Investing $1,000 in Berkshire stock 60 years ago would now be worth $44.7 million, far outpacing the S&P 500. Buffett’s simple investing strategy focuses on value, steady growth, dividends, and long-term holding. His portfolio includes Apple and Amazon.

Buffett’s investing criteria align with Alphabet, a potential fit for Berkshire. Alphabet boasts strong growth, shareholder returns, stable management, and a reasonable valuation. Despite Buffett’s previous reluctance, Alphabet’s leadership in AI and competitive advantages make it a compelling investment opportunity.

Alphabet faces challenges from antitrust actions and AI disruptions, but its innovative responses and leadership in the AI space position it well for the future. While Buffett has not invested in Alphabet, its cheap valuation and AI leadership make it an attractive option for investors seeking long-term growth potential.

Consider investing in Alphabet after weighing its strengths and challenges. The Motley Fool’s Stock Advisor team has identified 10 top stocks for investors, excluding Alphabet, that could offer massive returns. Past recommendations like Netflix and Nvidia have delivered significant gains, outperforming the S&P 500. Don’t miss out on the next top stock picks by joining Stock Advisor.



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