1 Surprising Artificial Intelligence (AI) Stock Warren Buffett Owns That Investors Should Buy on the Dip
Warren Buffett and Berkshire Hathaway tend to avoid the cutting edge of technology when making stock purchases. Buffett and Berkshire's investing preferences tend to lean more toward proven businesses with solid cash flows. However, Berkshire does own shares in at least one artificial intelligence (AI)-related company, and given its recent stock sell-off, it looks like a solid opportunity right now.Berkshire Hathaway owns roughly 10 million shares of Amazon (NASDAQ: AMZN), which makes it a small 0.7% of Berkshire's investment portfolio. Berkshire first bought the stock in 2019 and its willingness to hold on to most of its Amazon position (it sold 550,000 shares in the summer of 2024) through the ups and downs of the market since then has been noteworthy. This exposure to AI may be all Berkshire needs.Amazon's e-commerce operations are likely the first thing most investors think of when it comes to this company, but e-commerce is not really the top reason to own the stock. Amazon's e-commerce segment remains the company's largest by revenue, but it only grew at a 7% pace in Q4 2024. Given that commerce businesses tend to have slim margins, this segment isn't generating the level of profits some investors might want. Continue reading
Warren Buffett and Berkshire Hathaway tend to avoid the cutting edge of technology when making stock purchases. Buffett and Berkshire's investing preferences tend to lean more toward proven businesses with solid cash flows. However, Berkshire does own shares in at least one artificial intelligence (AI)-related company, and given its recent stock sell-off, it looks like a solid opportunity right now.
Berkshire Hathaway owns roughly 10 million shares of Amazon (NASDAQ: AMZN), which makes it a small 0.7% of Berkshire's investment portfolio. Berkshire first bought the stock in 2019 and its willingness to hold on to most of its Amazon position (it sold 550,000 shares in the summer of 2024) through the ups and downs of the market since then has been noteworthy. This exposure to AI may be all Berkshire needs.
Amazon's e-commerce operations are likely the first thing most investors think of when it comes to this company, but e-commerce is not really the top reason to own the stock. Amazon's e-commerce segment remains the company's largest by revenue, but it only grew at a 7% pace in Q4 2024. Given that commerce businesses tend to have slim margins, this segment isn't generating the level of profits some investors might want.
