Berkshire Hathaway's AI Stock Investments
According to Mark Wilson/Getty Images, even though Warren Buffett’s Berkshire Hathaway has experienced market misfortunes impacting stock valuations recently (Class A shares down 2.25% and Class B shares down 2.8% as of April 10), the Oracle of Omaha’s advice remains invaluable for long-term investors. Berkshire Hathaway maintains substantial positions in three AI-related stocks, potentially making them excellent choices for portfolio additions.
The Financial Post reports that Berkshire Hathaway acquired 1.3 million Domino’s shares in Q3 2024, valued at approximately $550 million. With shares trading around $428 in mid-October and $446 as of April 10, Buffett’s investment appears well-timed. Domino’s leverages AI through Microsoft’s Azure platform for AI assistants and predictive ordering to enhance efficiency.
While Berkshire Hathaway has reduced its Amazon shares for profit, it still holds a significant stake, with about 10 million shares worth $1.91 billion. Amazon Web Services is a leading cloud provider, utilizing Nvidia hardware for AI advancements. AI tools like Claude and Llama are integrated into AWS Bedrock, establishing Amazon as a key player in the burgeoning AI sector.
Coca-Cola has been a long-standing favorite of Buffett’s since 1988, exemplifying his strategy of buying and holding solid long-term investments. Despite Coca-Cola’s adoption of Microsoft Azure AI to streamline operations, this stock may serve more as a portfolio anchor or hedge rather than a source of short-term profits. Nonetheless, including a reliable performer can help mitigate portfolio volatility.