Berkshire Hathaway’s Key AI Investments
Berkshire Hathaway, led by Warren Buffett, has allocated roughly 23% of its portfolio to three companies heavily invested in artificial intelligence: Apple, Alphabet, and Amazon. Apple, which comprises 20.5% of the portfolio, has faced recent selling pressure as its valuation rises to 33 times forward earnings. Alphabet acquired 17.8 million shares worth $5.6 billion during Q3 and is experiencing growth in its cloud computing sector, with revenue up 33% last quarter. Meanwhile, Amazon’s AWS continues to dominate the cloud market, despite short-term pressures affecting its cash flow, forecasted at $14.8 billion over the last year.
Buffett’s strategy focuses on long-term competitive strengths rather than following hot trends, as illustrated by his cautious approach to AI investments. Both Apple and Alphabet are expected to benefit from ongoing advancements in AI technology, with Apple’s AI-enhanced Siri rollout and Alphabet’s improvements in cloud computing positioning them for future growth. This unique mix places Berkshire Hathaway in a strong position for continued success over the next decade.
