2023-04-05 10:00:43 ET
Despite the recent optimism and hype surrounding stocks associated with artificial intelligence (AI) and machine learning (ML), AI-focused investment strategies probably don't attract much interest from famed investor Warren Buffett -- at least, not directly. Buffett, who has spoken briefly about both the potential and the drawbacks of these technologies , would likely have less interest in being a direct AI investor. Emerging technologies tend to foster money-losing tech stocks, and history has usually proven him right when he was skeptical of such assets.
However, many of the stocks Buffett already owns have made him and the Berkshire Hathaway team into AI investors by default, as many of his smaller investments -- stocks like Amazon , Activision Blizzard , and Snowflake -- make extensive use of the technology. Moreover, three of Berkshire's largest holdings make significant use of AI, and only one would fit the formal definition of a "tech stock."
Buffett's Berkshire Hathaway did not buy Apple (NASDAQ: AAPL) for its AI-driven functionality, and AI is not a key reason that Apple now accounts for 44% of the value in the conglomerate's stock portfolio. Nonetheless, AI and ML play roles in enhancing virtually every current product and service offered by Apple. FaceID, voice recognition, and numerous apps are just some of the AI-driven features in its iPhone.
For further details see:
These Stocks Are Warren Buffett's 3 Largest AI-Fueled Investments