SNOW - Warren Buffett's Berkshire Hathaway Owns an Artificial Intelligence (AI) Stock You Might Want to Avoid (for Now)
2024-05-29 05:33:00 ET
Warren Buffett is one of the greatest investors of all time. He drove the Berkshire Hathaway investment company to a 4,300,000% increase in value since taking the helm in 1965, crushing the 31,200% gain in the S&P 500 over the same period.
Berkshire manages a portfolio of publicly traded stocks and securities worth $370.9 billion, many of which feature steady growth, robust profitability, strong management teams, and shareholder-friendly features like stock buybacks and regular dividend payments. Buying companies with those qualities is the recipe for Buffett's long-term success.
However, Buffett isn't the only manager at Berkshire with the freedom to buy stocks. In 2020, the fund bought shares of Snowflake (NYSE: SNOW) ahead of its initial public offering. The cloud computing company doesn't fit within Buffett's usual criteria at all -- while it's growing nicely, it continues to lose money and it doesn't return any cash to shareholders.
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Warren Buffett's Berkshire Hathaway Owns an Artificial Intelligence (AI) Stock You Might Want to Avoid (for Now)