Warren Buffett's Secret AI Stock Investments: Unveiling Berkshire Hathaway's Hidden Portfolio

Warren Buffett has secretly invested in these 3 AI stocks; which are the three stocks? Here are details

Berkshire Hathaway CEO Warren Buffett has secretly invested in these three artificial intelligence stocks via New England Asset Management (NEAM).Berkshire Hathaway CEO Warren Buffett's investment strategy is known to be replicated by investors. What is not known are these secret investments in his portfolio. Berkshire Hathaway had bought a reinsurance company General Re in an all-stock deal worth $22 billion in 1998. This deal also included General Re's investment arm New England Asset Management (NEAM). After the deal closed later that year, Berkshire Hathaway became the new owner of NEAM, as per a report on The Motley Fool. NEAM had $642 million in assets, across 120 securities including stocks, warrants, and exchange-traded funds, as of the closing on September 30, 1998. While Buffett doesn't directly manage NEAM's investments, by definition, what NEAM owns is also owned by Buffett's company, The Motley Fool reported. While the Oracle of Omaha traditionally has focused on value stocks and brand-name businesses, he also holds shares of three of the top-performing artificial intelligence (AI) stocks. Also Read : Donald Trump hits hard against affirmative action, DEI in first week in White House Buffett secretly owns stocks in networking solutions provider Broadcom. NEAM closed out the third quarter with 19,855 shares of Broadcom, which is presently worth $4.5 million. Broadcom's AI networking solutions are the preferred choice for AI-accelerated data centres. Broadcom CEO Hock Tan expects three of its hyperscaler customers to order a combined $60 billion to $90 billion in custom AI chips over the next three years, according to The Motley Fool. NEAM ended September with 7,490 shares of Microsoft, which is at present-day worth $3.1 million. Microsoft has one of the most well-known AI development partnerships including OpenAI, the maker of ChatGPT. The company also partnered with BlackRock, Global Infrastructure Partners, and MGX to invest in the data centre infrastructure needed to meet the demands of an increasingly AI-dependent society. Buffett also secretly owns shares of Alphabet via NEAM. Though NEAM sold shares of Alphabet for five consecutive quarters, the fund still held 5,195 Class A shares as of September 30, 1998. Also Read :Star Trek: Section 31' review: Why this feels more like a superhero movie? Alphabet is more about AI utility than hardware. Alphabet relies on AI to allow its customers to build and train Large Language Models (LLMs), improve machine learning capabilities and run generative AI solutions. Google Cloud could become Alphabet's top generator of operating cash flow by the latter half of this decade, according to The Motley Fool. Q1. How many secret stocks has Warren Buffett invested in and what are they? A1. Berkshire Hathaway CEO Warren Buffett has invested in three artificial intelligence stocks. He has invested in Broadcom, Microsoft and Alphabet. Q2. How did Warren Buffett make secret investments? A2. Warren Buffett secretly invested through New England Asset Management (NEAM). Berkshire Hathaway acquired General Re in 1998 and this deal included General Re's investment arm New England Asset Management (NEAM). After the deal closed, Berkshire Hathaway became the new owner of NEAM.

Warren Buffett "Secretly" Owns 3 Industry-Leading Artificial Intelligence (AI) Stocks | The Motley Fool

Berkshire Hathaway's quarterly 13Fs don't tell the full story of what's under the hood. When it comes to widely followed Wall Street money managers, Berkshire Hathaway's (BRK.A 0.64%) (BRK.B 0.94%) CEO Warren Buffett is in a class of his own. In the roughly six decades since taking the reins, the aptly named "Oracle of Omaha" has overseen an aggregate return in his company's Class A shares (BRK.A) of around 5,422,200%, which blows the cumulative total return (including dividends) of 38,751% for the benchmark S&P 500 over the same timeline out of the water. Considering how much Buffett has outperformed the broader market, it's not uncommon for investors to mirror his trades. This can be done by tracking Berkshire's quarterly filed Form 13F, which provides a snapshot of which stocks Buffett and his team have been buying and selling. However, Berkshire's 13F only tells part of the story of what's under the hood. In 1998, Berkshire Hathaway announced it would acquire reinsurance company General Re in an all-stock deal worth $22 billion. Though the reinsurance operations were the catalyst for this deal, General Re also owned a specialty investment firm known as New England Asset Management (NEAM). When the deal finalized in late 1998, Berkshire Hathaway became NEAM's new owner. As of the closing bell on Sept. 30, NEAM had $642 million in assets under management that was invested across 120 securities (stocks, warrants, and exchanged-traded funds). Even though the Oracle of Omaha doesn't manage NEAM's investments the way he does for Berkshire Hathaway's 44-stock, $293 billion portfolio, what NEAM owns is, by definition, also owned by Buffett's company. Though this "secret" portfolio for Warren Buffett has traditionally been focused on value stocks and brand-name businesses, it also holds shares of three of the hottest artificial intelligence (AI) stocks on the planet. The first high-flying AI stock Warren Buffett secretly owns is industry-leading networking-solutions provider Broadcom (AVGO 0.62%). New England Asset Management closed out the third quarter with 19,855 shares of Broadcom, which has a present-day value of nearly $4.5 million. Just as Nvidia's graphics processing units (GPUs) have been the undisputed top choice by businesses wanting to run generative AI solutions and build/train large language models (LLMs), Broadcom's AI networking solutions have been the preferred choice for AI-accelerated data centers. For instance, the company's Jericho3-AI fabric is capable of connecting up to 32,000 GPUs to maximize computing speed and reduce tail latency. Minimizing response lag is especially important for AI-driven software and systems. Additionally, Broadcom CEO Hock Tan believes custom AI chips could power a new channel of growth for his company. Tan expects three of its hyperscaler customers to order a combined $60 billion to $90 billion in custom AI chips over the next three years. But it's equally important to recognize that Broadcom is more than just an AI company. For instance, it's one of the top suppliers of wireless chips used in 5G-capable smartphones. The ongoing expansion of 5G networks has led to steady demand for Broadcom's smartphone chips and accessories. It also provides cybersecurity solutions, networking products, and optical sensors, among other products. If an AI bubble were to develop, Broadcom's diversified operating model should help it successfully navigate the storm. A second artificial intelligence stock that Warren Buffett secretly owns is software juggernaut Microsoft (MSFT -0.41%). New England Asset Management ended September with 7,490 shares of Microsoft, which have a present-day value of roughly $3.1 million. Although Microsoft is developing AI-GPUs for use in its data centers, the company's artificial intelligence ties primarily have to do with use cases of this technology. For example, Microsoft Azure is the world's No. 2 cloud infrastructure service provider, with an estimated 20% share of cloud service spending during the third quarter, according to independent tech analysis company Canalys. Microsoft has been incorporating AI solutions into Azure to give its clients access to a host of generative AI solutions. AI has the potential to reaccelerate Azure's already impressive growth rate. Microsoft also has AI development partnerships galore. Arguably the most well-known of its partnerships (and investments) is with OpenAI, the company behind ChatGPT, the popular virtual chatbot that led to the rise of AI. However, it's also partnered with BlackRock, Global Infrastructure Partners, and MGX to invest in the data center infrastructure needed to meet the demands of an increasingly AI-dependent society. Similar to Broadcom, Microsoft is much more than just an AI company. Its cloud service operations have been consistently growing by a double-digit percentage, while its legacy operating divisions, such as Windows and Office, continue to generate bountiful operating cash flow. Microsoft has more cash than it knows what to do with -- and that's not a bad thing. The third industry-leading AI stock Warren Buffett secretly owns shares of via New England Asset Management is Alphabet (GOOGL -1.35%) (GOOG -1.30%). Despite NEAM selling shares of Alphabet for five consecutive quarters, the fund still held 5,195 Class A shares (GOOGL) as of Sept. 30. Like Microsoft, Alphabet is more about AI utility than hardware. Even though it's developing tensor processing units to speed up machine-learning workloads, this company is more about the real-world application of AI. Google Cloud trails only Microsoft's Azure and Amazon Web Services in terms of global cloud service spending share (10% for Google Cloud), as of the third quarter of 2024. Alphabet is relying on AI to allow its customers to build and train LLMs, improving machine learning capabilities, and run generative AI solutions. By the latter-half of this decade, Google Cloud could become Alphabet's top generator of operating cash flow. But to keep with the theme of this list, Alphabet is far more than just Google Cloud. In December, Google accounted for a nearly 90% share of worldwide internet search. Looking back 10 years, Google has consistently maintained an 89% to 93% share of global search. Being the clear choice for advertisers wanting to target users often affords Alphabet ample ad-pricing power. Alphabet is sitting on a mountain of cash, as well. With the exception of Apple, no public company has repurchased more of their own stock over the trailing decade (ended Sept. 30) than Alphabet.

Warren Buffett's Biggest Artificial Intelligence Bets in 2025: 24.8% of Berkshire Hathaway's $292 Billion Stock Portfolio Is in These 2 AI Stocks | The Motley Fool

Berkshire Hathaway CEO Warren Buffett was born in Omaha, Nebraska, in 1930 and is one of history's most successful investors. Trained under the tutelage of Benjamin Graham, the father of value investing, Buffett has applied value-focused strategies to deliver incredible performance. In fact, if you had invested $1,000 in Berkshire Hathaway on the day that Buffett purchased a controlling stake in the company and became its CEO in 1965, you would now be sitting on holdings worth more than $37 million. With that kind of incredible performance, it's safe to say he's earned his nickname, the Oracle of Omaha. But while Buffett is best known as one of the luminaries of value investing, there are also some high-profile growth stocks in Berkshire's portfolio -- and some of these companies are in the forefront of the artificial intelligence (AI) revolution. If you're interested in how Buffett and Berkshire are playing the AI trend, read on for a look at two artificial intelligence stocks that account for about 25% of the investment conglomerate's $292 billion portfolio. Apple (AAPL 1.97%) has been Berkshire's biggest portfolio holding for years, and Buffett has been emphatic in his praise of the tech company. At times, he has described Berkshire's investment in Apple as a pillar of his company. He's also said that Apple is probably the best business he knows of in the world. Even though smartphones are a highly commoditized product, Apple's unsurpassed brand strength and loyal customer base allow the company to command stellar margins with its iPhones. Even with so many different hardware manufacturers competing in the space, it actually captures the large majority of global operating profits on smartphone sales. Apple's dominance in mobile hardware has helped the company serve up tremendous profits, and backing strong companies with reliable profitability has been one of the cornerstones of Buffett's investing strategy. Besides the immediate sales and earnings benefits of dominating the mobile hardware market, Apple's competitive position in the space has also opened up other opportunities. Thanks to the company's entrenched mobile business, it has been able to build a strong and highly profitable software and services business. Apple's strengths in mobile have also served as the foundation for the company's AI strategy. It recently made its Apple Intelligence software platform a key selling point for its iPhone 16 line, and it's likely still in the very early stages of taking advantage of AI-related growth opportunities. The company is still Berkshire's largest holding and accounts for about 24% of its portfolio, but Buffett and his team of analysts have actually been making eye-catching moves with the stock lately. Berkshire still owns 300 million shares of Apple, but it has actually sold more than 615 million shares since the fourth quarter of 2023. Reducing its position in Apple has meant that the investment conglomerate has missed out on billions in potential profits, but the move is sending signals that Berkshire is taking a cautious approach to the broader market right now. So even though the AI revolution is presenting potentially massive growth opportunities, Buffett isn't abandoning his value-focused roots. Berkshire Hathaway initiated a position in Amazon (AMZN 2.57%) in the second quarter of 2019, and Buffett openly expressed his regret for not having made the move sooner. He even went so far as to call himself an "idiot" for not buying into the tech giant's incredible run sooner. At 0.7% of Berkshire's stock portfolio, Amazon represents a relatively small holding. On the other hand, it wouldn't be surprising to see Berkshire jump on a buying opportunity and significantly increase its position at some point. Amazon has a fantastic competitive moat, a characteristic that Buffett has long coveted when it comes to investing in companies. The e-commerce giant has unrivaled scale and infrastructure advantages. It also has fantastic brand strength. Besides its market-leading online retail business, Amazon also leads in cloud-infrastructure services. Its Amazon Web Services (AWS) segment has grown at an incredible rate over the past decade, and it consistently serves up fantastic profit margins. So even though e-commerce accounts for most of the company's sales, it's actually AWS that generates most of Amazon's profits. With AWS positioned as one of the go-to infrastructure services for building, deploying, and scaling up AI applications, Amazon looks poised to enjoy strong sales and earnings growth in conjunction with the rise of artificial intelligence. But investors shouldn't overlook the transformative impact that the technology is poised to have on the company's e-commerce business. Online retail has historically been a relatively low-margin business because of its high operating costs, but Amazon's e-commerce unit could be on the verge of incredible increases for profitability. AI and robotics have the potential to significantly reduce costs for warehouse operations and deliveries, and these advances in supply chain automation will likely unlock billions of dollars in earnings. So even though Amazon occupies a smaller spot in Berkshire's portfolio, it's an AI stock that investors should be paying close attention to right now.

32.1% of Warren Buffett's $295 Billion Portfolio Is Invested in 4 Artificial Intelligence (AI) Stocks | The Motley Fool

Had you invested $1,000 in Berkshire Hathaway (BRK.A -1.57%) (BRK.B -1.72%) when Warren Buffett became its CEO in 1965, you would have $42.5 million today. The same investment in the S&P 500 would have grown to just $343,000 over the same period, which highlights Buffett's incredible ability to pick stocks. You won't ever find Buffett chasing the latest stock market trends, not even one as powerful as artificial intelligence (AI). However, four existing holdings in Berkshire's $297 billion portfolio of publicly traded securities are using AI to supercharge their legacy businesses. Berkshire bought shares in Domino's Pizza (DPZ 0.30%) during the third quarter of 2024 (ended Sept. 30), so it's a relatively new addition to the portfolio. It's the world's largest pizza chain, serving over 1 million customers per day from its 21,000 stores across 90 countries. Domino's uses technology extensively to improve efficiency, which translates into lower costs and higher profits. The company has deployed an AI algorithm to identify patterns in customer behavior, so it knows when to start making pizzas -- even before an order is officially completed on its website. That means customers receive their food faster than ever. Eventually, Domino's wants AI to handle everything from inventory management to staff scheduling, so this is just the beginning of a technological revolution at the company. Winning the approval of Buffett and his team wasn't easy last year, because Berkshire was a net seller of stocks overall. Domino's was one of just five new additions to the conglomerate's portfolio, which might be a very bullish sign for the pizza giant. Amazon (AMZN 1.86%) is the world's largest e-commerce company. It also dominates the cloud computing industry, and it has a growing presence in digital advertising and streaming. AI isn't just a tool for Amazon, it's going to be a core part of its entire organization. The company already uses AI in its recommendation engine to show customers products they are likely to buy. And it developed an AI assistant called Rufus to help customers with their purchase decisions. Even Amazon's fulfillment centers rely on AI -- aside from the fleets of autonomous robots, a new technology called Project Private Investigator uses AI and computer vision to identify defective products before they are shipped to customers. Then there is the Amazon Web Services (AWS) cloud platform, which is becoming a preferred destination for developers looking to build AI software. AWS is working to dominate the three core layers of AI cloud services: infrastructure (data centers and chips), large language models (LLMs), and software. During the third quarter of 2024, management said AI revenue within AWS grew by a triple-digit percentage year over year, and it's currently growing three times faster than the cloud business did at the same stage of its life cycle. Berkshire bought Amazon stock in 2019, but Buffett has often expressed regret for not identifying the company's potential much sooner. Nevertheless, his company's position is worth over $2.3 billion, so Berkshire stands to make a substantial amount of money if Amazon remains a leader in the AI race. Coca-Cola (KO -1.02%) is the world's largest beverage company, with people in 200 countries consuming 1.9 billion servings of its drinks every day. Achieving that level of scale wouldn't be possible without technology, and Coca-Cola is staying true to its history as an innovator by investing heavily in AI. In April 2024, the company made a commitment to spend $1.1 billion over five years on Microsoft's Azure cloud platform, where it will access a portfolio of AI services to improve its supply chains, productivity, and marketing. Speaking of marketing, Coca-Cola has already used AI in several campaigns. It launched Create Real Magic during the recent holiday period, which allowed users to generate holiday-themed digital snow globes on the company's website. Prior to that, it used AI to create a promotional version of its flagship soda called Coca-Cola Y3000, which captured what the drink could taste like in the year 3000 based on mountains of data from customers. Berkshire acquired 400 million shares of Coke between 1988 and 1994, at a total cost of $1.3 billion. It never sold a single share, and today, that stake is worth over $25 billion. Buffett probably never anticipated AI would become such a big part of Coca-Cola's future, but Berkshire will benefit from the value it creates, nonetheless. Apple (AAPL 0.53%) accounted for around 50% of the total value of Berkshire's portfolio at the beginning of 2024, but Buffett and his team decided to take some of the conglomerate's profits by selling over half of the position. Apple remains Berkshire's largest holding, though, with a 22.7% weighting in its portfolio. Management has been preparing for the AI revolution for a while. Its strategy began with hardware, because the company had to design new chips and components for its latest iPhones, iPads, and Mac computers that were powerful enough to support the technology. With those now in place, the company was able to launch its Apple Intelligence software last year, which introduced swathes of new AI features. These include new writing tools that empower users to quickly summarize email and text messages and then generate outgoing replies. Apple Intelligence can also prioritize notifications for users based on their preferences, saving them time. Even the Siri voice assistant received a makeover, because it now taps into the knowledge and capabilities of OpenAI's ChatGPT. There are more than 2.2 billion active Apple devices worldwide, so the company could eventually become the largest distributor of AI to consumers. Therefore, despite the selling spree last year, Berkshire could still do extremely well over the long term with its remaining stake.

Warren Buffett's $642 Million "Secret" Portfolio Is Selling What Might Be Wall Street's Most Attractive Artificial Intelligence (AI) Stock | The Motley Fool

Few money managers draw the attention of professional and everyday investors quite like Berkshire Hathaway's (BRK.A 1.88%) (BRK.B 1.88%) Warren Buffett. Spanning the roughly six decades the Oracle of Omaha has been CEO of Berkshire, he's overseen a cumulative gain of better than 5,385,000% in his company's Class A shares (BRK.A). Thanks to Form 13F filings with the Securities and Exchange Commission, riding Warren Buffett's coattails to sizable long-term gains has been a viable investment strategy. A 13F provides investors an under-the-hood look at which stocks money managers with at least $100 million in assets under management (AUM) have been buying and selling. Buffett oversees a 44-stock, $292 billion portfolio at Berkshire Hathaway. Yet what might come as a surprise to investors is that Berkshire Hathaway's quarterly filed 13F doesn't tell the full story of all the securities Buffett's company is holding. One of the strategies Buffett has employed to grow Berkshire Hathaway over six decades -- beyond just being a long-term investor -- is to acquire businesses. Berkshire has made around five dozen acquisitions with Buffett at the helm, including insurer GEICO and railroad BNSF. However, one transaction stands out as altering which stocks and exchange-traded funds (ETFs) Berkshire Hathaway owns. In 1998, Berkshire Hathaway announced it would acquire reinsurance company General Re for $22 billion in an all-share deal. Though the reinsurance operations were the crown jewel of this buyout, General Re also owned a specialty investment fund known as New England Asset Management (NEAM). When Buffett's company closed on General Re in December 1998, it became the new owner of NEAM. New England Asset Management ended the September quarter with $642 million in AUM spread across 120 securities. Even though Buffett doesn't oversee the investment strategy of NEAM's portfolio in the same way he does for Berkshire Hathaway's $292 billion portfolio, what NEAM owns is, ultimately, part of Berkshire Hathaway. Thus, New England Asset Management is Warren Buffett's "secret" portfolio. Because NEAM is managing $642 million in assets, it's well past the threshold of needing to file a quarterly 13F. In other words, investors can keep a close eye on which stocks are being purchased and sold every three months for Buffett's secret portfolio. Similar to the Oracle of Omaha, NEAM's advisors tend to be value oriented. With the stock market at one of its priciest valuations in history, Buffett's hidden portfolio has been a fairly persistent seller of high-growth tech stocks of late, including some of the most-popular companies in the artificial intelligence (AI) arena, such as Nvidia and Microsoft. However, one AI stock Buffett's secret portfolio is selling might be one of Wall Street's smartest buys. According to the researchers at PwC, AI is a massive opportunity, as evidenced by their call that artificial intelligence will add $15.7 trillion to global gross domestic product come 2030. But with most AI stocks soaring, funds like NEAM have rung the register and locked in their gains. At the midpoint of 2023, Buffett's under-the-radar portfolio was holding 30,400 shares of Alphabet (GOOGL 3.11%) (GOOG 3.10%), the parent company of internet search engine Google, streaming service YouTube, and cloud infrastructure service platform Google Cloud, among other ventures. But after persistent selling by NEAM's asset managers for five consecutive quarters, only 5,195 shares remain, as of the September-ended quarter. This represents a decline of 83% spanning 15 months. Unlike Nvidia, which develops the hardware used by businesses to power their AI-accelerated data centers, Alphabet's AI ties are usage-driven. Specifically, it's incorporating generative AI solutions into Google Cloud to allow its customers to build and train large language models, deploy AI agents, and improve their marketing efforts. Based on data from tech-analysis firm Canalys, Google Cloud clocked in with a 10% share of global cloud service spending during the third quarter. Since enterprise cloud spending is still in its relatively early stages of expansion, Google Cloud is expected to sustain double-digit sales growth and juicy margins. While artificial intelligence is the future growth driver for Alphabet, its search engine continues to be its foundational cash cow. Google accounted for nearly a 90% share of worldwide internet search in December 2024, per GlobalStats, and has consistently tallied 89% to 93% of global internet search share over the last decade. Being the clear top choice for businesses wanting to target users with their message(s) should afford Alphabet substantial ad-pricing power. Something else Alphabet has working in its favor is its cash-rich balance sheet. The company's cash, cash equivalents, and marketable securities totaled $93.2 billion, as of Sept. 30, with Alphabet generating north of $105 billion in operating cash flow over the trailing year (also as of Sept. 30). Having a treasure chest of capital affords Alphabet the luxury of buying back its stock, paying a dividend, and aggressively investing in high-growth initiatives, such as its AI-driven cloud infrastructure service platform. But the biggest mistake of all for Buffett's secret portfolio may be selling the majority of its stake in Alphabet while it's still historically cheap. Shares of Alphabet can be picked up for 21 times forecast earnings per share in 2025 and roughly 15.7 times projected cash flow. Both figures are below Alphabet's average forward price-to-earnings ratio and price-to-cash-flow ratio over the trailing-five-year period. In other words, Alphabet remains historically cheap and attractive while some of the most-popular AI stocks trade at premium valuations.