25% of Warren Buffett’s $315 Billion Portfolio Is Invested in 2 Artificial Intelligence (AI) Stocks
Legendary investor Warren Buffett took the helm of the holding company Berkshire Hathaway in 1965, and he has led it to fantastic, market-crushing gains. Through the end of 2024, just a year shy of his retirement, Berkshire Hathaway had gained 5,502,284% in per-share market value versus a 39,054% gain for the S&P 500.
Investors looking to emulate his fantastic success are best off following his advice, or you can easily buy shares of Berkshire Hathaway stock. If you look through the company’s equity portfolio, which is public, you might be surprised to see a few tech stocks.
Buffett is a fan of value stocks and dividend stocks, and he loves consumer goods. In fact, the two artificial intelligence (AI) stocks he does own — Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) — are both consumer goods giants, and AI can drive further growth for both of them.
Apple is one of a trio of stocks that Buffett said he would never sell. While many people would label it a tech company, Buffett loves the consumer goods aspect of its business. It sells lots of devices to lots of people, and the interconnected system creates an Apple community with loyal users and customers who typically buy all-Apple products — iPhones, laptops, and the like.
The iPhone is its premier product, accounting for about half of total revenue. Users love its design, quality, features, and more. Once converted, they typically don’t look back.
Although fans are known to upgrade to new models, it often takes a few years. Recently, there have been higher sales from customers who upgraded when digital became more important during the pandemic.
Increasing iPhone sales have greater implications than simply adding to the top line. Investors and analysts have been worried about the trajectory of Apple Intelligence, which seems to be behind other AI programs.
But increasing iPhone sales are a clear indication that customers are happy with their devices, that the level of AI is working for them, and that there are other features that may be more important. This is Apple’s edge, and it’s why Buffett loves it.
Amazon is only a small fraction of Buffett’s portfolio, but it packs a mean punch. It’s one of the most important AI companies in the world, and combined with its consumer focus, Amazon still has incredible long-term opportunities.
