Russ Cohen

Unveiling Warren Buffett’s “Secret” Artificial Intelligence (AI) Stock Holdings Unveiling Warren Buffett’s “Secret” Artificial Intelligence (AI) Stock Holdings

For over six decades, the legendary CEO of Berkshire Hathaway, Warren Buffett, has been an unparalleled force in the world of investing. While the S&P 500 has demonstrated a formidable return since Buffett’s tenure began, the “Oracle of Omaha” has orchestrated an astronomical surge of nearly 5,000,000% in Berkshire Hathaway’s Class A shares (BRK.A) – a feat that has captivated Wall Street.

With an annual pilgrimage of 40,000 shareholders to Berkshire Hathaway’s revered annual meeting, all eyes are on Buffett. Investors scour Berkshire’s quarterly Form 13F filings, hoping to glean insights from the master investor’s moves.

A deeper inspection reveals a hidden gem within Buffett’s empire: a quiet $646 million portfolio managed by New England Asset Management, an entity that remained rather discreet within Berkshire Hathaway’s diverse holdings.

Warren Buffett surrounded by people at Berkshire Hathaway's annual shareholder meeting.

Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.

Exploring Buffett’s Hidden AI Treasure Trove

In 1998, Berkshire Hathaway acquired General Re, inadvertently inheriting New England Asset Management in the process. This subtle maneuver birthed the “secret” portfolio, a $646 million treasure trove awaiting discovery.

Amidst the ETFs and traditional companies dwelling in this covert realm lies a trio of stocks intricately linked to the domain of artificial intelligence (AI). Fueling awe and curiosity, these AI stocks speak to a future where technology transcends human capabilities.

Alphabet: AI at the Core

Anchored at the forefront of Buffett’s clandestine portfolio is Alphabet, the parent company overseeing acclaimed entities like Google, YouTube, Waymo, and Google Cloud. With 10,500 Class A shares (GOOGL) in its grasp, Alphabet’s pervasive reliance on AI shines through its various businesses.

From personalized marketing solutions to empowering Google Cloud with generative AI prowess, Alphabet’s AI integration underpins its continued success in the digital realm. Boasting dominance in the search engine domain and a soaring user base on YouTube, Alphabet is positioned for sustained growth.

Yet, the true litmus test for Alphabet’s future lies in the expansion of Google Cloud, the burgeoning cloud service vying for market share. Buoyed by AI-driven innovations, Google Cloud promises substantial revenue growth and operational efficiency.

Broadcom: Pioneering in Semiconductors and AI

Nestled within Buffett’s covert enclave is Broadcom, a stalwart semiconductor giant making waves in the AI landscape. With NEAM securing 3,970 shares of Broadcom valued at nearly $5.3 million, the semiconductor heavyweight’s remarkable 153% surge in 2023 stems largely from its AI endeavors.

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Unveiling the Jericho3-AI chip in April 2023, Broadcom showcases its commitment to AI advancements. This groundbreaking chip powers high-performance GPUs, fostering rapid processing essential for training complex AI models and enabling real-time AI applications.

Aside from its AI ventures, Broadcom’s proficiency in semiconductor sales underscores its financial robustness, amplifying its standing in the competitive tech arena.

Exploring Tech Giants Shaping The Future

Unveiling the Tech Titans: Broadcom, Microsoft, and the Tech Revolution

The Rise of Broadcom

As the age of 5G emerges, Broadcom found itself in the sweet spot of innovation. Their wireless chips have become enablers of the blazing speeds consumers now revel in. The saga of Broadcom is not limited to the smartphone realm. Expanding into automotive and enterprise security, the company has cast its net wide, reeling in success.

The bounty of Broadcom is a sight to behold, with a substantial backlog fueling a consistent stream of operating cash flow that flows as predictably as the tides.

A face emerging from a sea of circuitry that's representative of artificial intelligence.

Image source: Getty Images.

The Microsoft Saga

Behold Microsoft, the juggernaut of Wall Street, with Warren Buffet’s secret affections tucked into its pockets. Microsoft’s dance with artificial intelligence is nothing short of a tango with the future. From funding OpenAI to birthing its Ai chips, Azure Maia 100, Microsoft is setting the stage for the AI opera of tomorrow.

Microsoft’s cash coffers overflow with $80 billion, a testament to its financial prowess. Azure, a shining star in the cloud firmament, twinkles with 30% sales growth, a lighthouse guiding the ship of innovation.

Legacy segments like Windows and Office, though old warhorses, continue to gallop in cash, allowing Microsoft to plant seeds for future forests.

Alphabet’s Whirlwind

As we ponder investing in Alphabet, the tale of its growth unfolds. Steeped in the waters of artificial intelligence and cloud computing, Alphabet has set sail towards profitability. While Microsoft has amassed wealth, Alphabet has garnered wisdom, a digital Socrates in the tech arena.

Stock Advisor’s whispers echo tales of potential riches, reminding us of Nvidia’s rise to glory. With a roadmap to success and a track record that towers over the S&P 500, Alphabet beckons investors to brave the depths of possibility.