Had You Bought This Artificial Intelligence (AI) Stock When Warren Buffett Sold It, You'd be Sitting on a 47% Return Now
Warren Buffett has served as the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) since 1965. He'll step down from the role at the end of 2025, capping off an incredible run during which he delivered consistent, market-crushing returns for its shareholders.Buffett prefers to invest in companies with steady growth, reliable earnings, and strong management teams that favor shareholder-friendly policies like paying dividends and repurchasing their shares. That's why it was surprising to many when Berkshire bought Snowflake (NYSE: SNOW) stock in 2020 ahead of its initial public offering (IPO) -- the cloud data warehouse giant hardly ticked any of Buffett's usual boxes.That means one of his lieutenants probably was the key decision-maker behind the purchase. However, Berkshire Hathaway sold its entire position in Snowflake in 2024's second quarter, and the exit price suggests it booked hardly any gain on the investment. Had you bought shares of Snowflake at the moment the conglomerate sold, you'd be sitting on a 47% return right now -- but I still think Buffett and his team made the right decision.Continue reading
Warren Buffett has served as the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) since 1965. He'll step down from the role at the end of 2025, capping off an incredible run during which he delivered consistent, market-crushing returns for its shareholders.
Buffett prefers to invest in companies with steady growth, reliable earnings, and strong management teams that favor shareholder-friendly policies like paying dividends and repurchasing their shares. That's why it was surprising to many when Berkshire bought Snowflake (NYSE: SNOW) stock in 2020 ahead of its initial public offering (IPO) -- the cloud data warehouse giant hardly ticked any of Buffett's usual boxes.
That means one of his lieutenants probably was the key decision-maker behind the purchase. However, Berkshire Hathaway sold its entire position in Snowflake in 2024's second quarter, and the exit price suggests it booked hardly any gain on the investment. Had you bought shares of Snowflake at the moment the conglomerate sold, you'd be sitting on a 47% return right now -- but I still think Buffett and his team made the right decision.
