Key Points
Berkshire Hathaway (NYSE: BRKA, BRKB) has a $361 billion portfolio but lacks investment in Nvidia (NASDAQ: NVDA), a leader in the AI chip market. Instead, its three largest AI-related holdings are Apple (NASDAQ: AAPL), representing 20.2% of its portfolio; Alphabet (NASDAQ: GOOG, GOOGL), accounting for 7.4%; and Moody’s (NYSE: MCO), at 3.4%.
Apple benefits from AI through its ecosystem and custom chips, while Alphabet leverages AI particularly in its Google Cloud Platform and large language models. Moody’s employs AI to enhance its financial services. Over the last five years, these stocks yielded returns of 113%, 138%, and 35%, respectively, compared to Nvidia’s staggering 912% during the same period.
Berkshire’s CEO Warren Buffett has historically avoided tech stocks he doesn’t fully understand, which led to the missed opportunity with Nvidia. His successor, Greg Abel, favors more stable investments like Apple and Alphabet, which are less susceptible to semiconductor market fluctuations.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
