32.1% of Warren Buffett $ 295 million portfolio is invested in 4 artificial intelligence shares (AI)

If you had invested $ 1,000 to Berkshire Hathaway (NYSE: Brk.a)(NYSE: Brk.b) When Warren Buffett became his CEO in 1965, you would have $ 42.5 million today. The same investment in the S&P 500 It would have grown up to only $ 343,000 during the same period, which highlights Buffett’s incredible ability to choose actions.

You will never find buffett by pursuing the latest bag trends, not even as powerful as artificial intelligence (AI). However, four stock portfolio of $ 297 million securities are using AI to overload their inherited businesses.

Warren Buffett smiling, surrounded by cameras. — Image Source: The Motley Fool.

Berkshire bought shares at Pizza Domino (NNAME: DPZ) During the third quarter of 2024 (ending September 30), so it is a relatively new addition to the portfolio. It is the largest pizza chain in the world, which serves more than one million daily customers from its 21,000 stores in 90 countries.

Domino’s uses technology widely to improve efficiency, which results in lower costs and higher benefits. The company has deployed a Ay Algorithm to identify patterns in customer behavior, so you know when to start pizzas, even before an order is officially made on its website. This means that customers receive food faster than ever.

Finally, Domino’s Ia wants to manage everything, from the management of inventories to the programming of the staff, so it is only the beginning of a technological revolution in the company.

Winning Buffett’s approval and his team was not easy last year because Berkshire was a Net seller of stocks Generally. Domino’s was one of the five new additions to the conglomerate’s portfolio, which could be a very upward sign for the Pizza giant.

Amazon (Nasdaq: Amzn) It is the largest e -commerce company in the world. It also dominates the cloud computing industry and has a growing presence in digital advertising and transmission. Ai is not only a tool for Amazon, it will be a fundamental part of its entire organization.

The company already uses and in its recommendation engine to show customers that are likely to buy. And developed a AI wizard called Rufus to help customers with their purchase decisions.

Even Amazon’s compliance centers are based on the AS, apart from the flaks of autonomous robots, a new technology called Project Private Investigator uses IA and Vision Informàtica to identify defective products before they are sent to customers.

Then is the Amazon Web Services (AWS) cloud platform, which is becoming a preferred destination for developers looking for AI software. AWS works to master the three basic layers of AI cloud services: infrastructure (data centers and chips), large language models (LLMS) and software.

During the third quarter of 2024, management said that AI revenue within AWS grew a percentage of three digits year a year, and is currently growing three times faster than the cloud business in it. Stage of their life cycle.

Berkshire bought Amazon shares in 2019, but Buffett often expressed regret not to identify the company’s potential much earlier. However, the position of your company is worth $ 2.3 billion, so Berkshire is a substantial amount of money if Amazon is still a leader in the AI race.

Coca-Cola (NYSE: KO) It is the largest drinks company in the world, with people from 200 countries consuming 1.9 billion portions of their drinks every day. Achieving this level of scale would not be possible without technology and Coca-Cola remains true to its history as innovative by investing a lot in AI.

In April 2024, the company pledged to spend $ 1.1 billion for five years MicrosoftThe Azure Cloud platform, where it will access a portfolio of AI services to improve its supply, productivity and marketing chains.

Speaking of marketing, Coca-Cola has already used the AI in several campaigns. He launched Create Magic during the recent holiday period, which allowed users to generate holiday digital snowballs on the company’s website.

Before that, AI was used to create a promotional version of its flagship called Coca-Cola Y3000, which captured what the drink could taste in the year 3000 based on customer data mountains.

Berkshire acquired 400 million COke shares between 1988 and 1994, with a total cost of $ 1.3 billion. He never sold a single part, and today this participation is worth more than $ 25 billion. Buffett probably never predicted that the AI became such a great part of Coca-Cola’s future, but Berkshire will benefit from the value it creates, however.

Apple (NASDAQ: AAPL) It represented about 50% of the total value of Berkshire’s portfolio in early 2024, but Buffett and his team decided to take on some of the conglomerate benefits, selling more than half the position. Apple is still Berkshire’s largest participation, however, with 22.7% weighting in his portfolio.

The management has been prepared for the AI revolution for a while. Its strategy began with the hardware, because the company had to design new chips and components for its latest iPads, iPads and Mac computers powerful enough to support technology. With those now there, the company was able to launch its Apple Intelligence software last year, which introduced Swathes of New Functions.

These include new writing tools that allow users to quickly summarize emails and text messages and then generate outgoing answers. Apple Intelligence may also prioritize users’ notifications based on their preferences, saving them time. Even Siri’s voice assistant received a change in image, because the knowledge and capabilities of Openai’s Chatgpt is now used.

There are more than 2.2 billion Apple devices active worldwide, so that the company could become the largest distributor for consumers. Therefore, despite the sale of last year’s sale, Berkshire could still do well in the long term with his remaining participation.

Before buying shares at Domino’s pizza, consider this:

It Motley Fool Stock Exchange Advisor The analyst team just identified what they think are the 10 best stocks For investors to buy now … and Domino’s pizza was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Think about when Nvidia Made this list on April 15, 2005 … if you invested $ 1,000 at the time of our recommendation, would have $ 863,081!*

Now it’s worth noting Value AdvisorThe total average profitability is 894%: a market crushing performance compared to 176% For the S&P 500. Don’t miss the most recent list.

Get more information »

*The Exchange Minister returns from January 21 2025

John Mackey, a former CEO of Whole Foods Market, a Amazon subsidiary, is a member of the Board of Directors of the Motley Fool. Anthony Di Pizio It has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Amazon, Apple, Berkshire Hathaway, Domino’s Pizza and Microsoft. The Motley Fool recommends the following options: January Long of 2026 $ 395 Calls to Microsoft and brief January 2026 $ 405 calls to Microsoft. The mold’s fool has a Outreach policy.

32.1% of the Warren Buffett $ 295 million portfolio is invested in 4 artificial intelligence shares (AI) was originally published by Motley Fool

Source link