Warren Buffett, CEO of Berkshire Hathaway, is known for his value-investing strategies. However, recent moves show that even the Oracle of Omaha is paying attention to artificial intelligence (AI). Berkshire Hathaway now holds substantial positions in two AI growth stocks, which make up 23.8% of the company’s $298 billion stock portfolio.
Apple Inc. has played a big role in Berkshire Hathaway’s market-beating performance over the past five years. Berkshire first bought Apple shares in 2016.
Today, it owns 300 million shares of Apple, representing 23.1% of its total portfolio. Apple’s dominance in the global market positions it as a central player in AI integration across mobile technology, wearables, and smart homes. Despite Apple’s strong performance and potential in AI, Berkshire Hathaway has been reducing its position in Apple since last year.
Buffett’s focus on AI investments
The company has sold about 605 million shares, reducing its stake by about 70%. This cautious move suggests that Buffett is mindful of current stock valuations and potential economic risks.
In a departure from his usual investment strategy, Buffett purchased 10 million shares of Amazon in 2019, accounting for 0.7% of Berkshire’s total equity portfolio. Amazon Web Services (AWS) has become a critical growth segment for the company, contributing over 60% of Amazon’s total operating income. The recent introduction of Amazon’s generative AI capabilities has further strengthened its position in the market.
Amazon CEO Andy Jassy highlighted the company’s extensive rollout of new AI features, offering solutions to meet diverse demands. Amazon’s cloud services, powered by AI, have seen accelerated adoption, with AWS sales increasing 19% in the third quarter. Management at Amazon sees significant long-term opportunities in AI, expecting it to become a multibillion-dollar business.
Warren Buffett’s strategic investments in Apple and Amazon reflect a calculated approach to the AI revolution. While he remains cautious about stock valuations and economic uncertainties, his significant stakes in these tech giants demonstrate confidence in their long-term potential in a rapidly evolving technological landscape.
