In the Wall Street investment field, Warren Buffett, the CEO of Berkshire Hathaway, is considered a unique investment magnate. Since taking over Berkshire in 1965, the cumulative return rate of the company's A shares he manages has reached 5028429% as of the close on July 10.
Buffett's secret to success mainly includes purchasing shares of well-known, time-tested companies with clear competitive advantages. Although this strategy primarily focuses on value stocks, there are also occasionally growth stocks in the $44 billion, 44-company investment portfolio managed by Buffett and his team.
Surprisingly, Warren Buffett and his team have made substantial bets on the AI revolution, at least to some extent.
AI involves using software and systems to perform tasks that humans usually supervise or execute. These systems learn and evolve over time, becoming more proficient in tasks or learning new skills, which is why AI has broad applicability.
As of the close on July 10, Warren Buffett has invested approximately 46% (or $1888 billion) of his $410 billion investment portfolio under Berkshire Hathaway in four top AI companies.
Apple: $183.9 billion (accounting for 44.8% of the investment assets)
This June, at the company's annual global developers' conference, Apple introduced what it calls "Apple Intelligence." Although Apple has relied on various AI solutions for years, it has planned to introduce chatbot solutions supported by ChatGPT into its operating system, making its voice assistant Siri more intuitive.
BYD: $2 billion (accounting for 0.5% of the investment assets)
New vehicles are increasingly reliant on technology and AI to enhance driver safety and comfort. For example, BYD launched its futuristic architecture in mid-January, aimed at helping drivers use automatic parking and other advanced driving assistance technologies. BYD has also collaborated with Chinese regulatory agencies to test Level 3 autonomous driving on expressways in Shenzhen.
Amazon: $2 billion (accounting for 0.5% of the investment assets)
While most investors are familiar with Amazon due to its dominant online market, Amazon Web Services (AWS), the cloud infrastructure service platform, is arguably its most crucial operating division. Businesses in AWS can rely on generative AI solutions to deploy virtual chatbots or assistants and build or expand large language models (LLMs).
Snowflake: $842 million (accounting for 0.2% of the investment assets)
Similar to Amazon, Snowflake was added to Berkshire's investment portfolio by Buffett's investment "lieutenants," Todd Combs and Ted Weschler.
Last year, Snowflake acquired Neeva, a company that uses cloud-based generative AI solutions to improve search. Snowflake plans to rely on various generative AI solutions in its data cloud to allow its customers to easily analyze data and build, train, and deploy LLMs.
Highlight:
🤖 44.8% of Warren Buffett's investment portfolio is invested in technology giant Apple, totaling $183.9 billion.
🔋 Another AI company is Chinese electric vehicle manufacturer BYD (BYD), where Berkshire holds approximately 6% of the shares, valued at about $2 billion.
🛒 Amazon is another AI company that Warren Buffett has bet on. Its AWS cloud computing service platform is a crucial operating division, with a market value of about $2 billion.
