35% of Warren Buffett's $296 Billion Portfolio Is Invested in 3 Artificial Intelligence (AI) Stocks

Berkshire Hathaway's Investment Strategy - Warren Buffett's leadership has driven Berkshire Hathaway's stock to a compound annual return of 19.8% since 1965, turning a $1,000 investment into$42.5 million [1] - Buffett's strategy focuses on companies with steady growth, robust profitability, strong management, and shareholder-friendly initiatives like buybacks and dividends [11] Amazon (AMZN) - Amazon is the world's largest e-commerce company and is leveraging AI in its fulfillment centers and through its AI shopping assistant, Rufus [2] - AWS, Amazon's cloud computing platform, is a key focus for investors as it aims to dominate the three core layers of AI: infrastructure, large language models (LLMs), and software [2] - AWS operates data centers with Nvidia's chips and its own custom chips, Trainium and Inferentia, which can save up to 50% on AI training costs [3] - AWS Bedrock platform offers third-party LLMs and Amazon's in-house Titan models, while the Q virtual assistant helps businesses extract insights and generate code [3] - Berkshire Hathaway invested $2.2 billion in Amazon in 2019, with potential for significant long-term gains if Amazon's AI initiatives succeed [4] - AWS revenue grew 19$27.4 billion in Q3 2024, with AI revenue growing at a triple-digit percentage rate [13] Coca-Cola (KO) - Coca-Cola has embraced AI, appointing a "head of generative AI" and using AI to create promotional products like Coca-Cola Y3000 [5][6] - Berkshire Hathaway's $1.3 billion investment in Coca-Cola between 1988 and 1994 is now worth$25 billion, with AI potentially adding further value [7] - AI is a key part of Coca-Cola's marketing strategy, including interactive campaigns like "Create Real Magic" [14] - Coca-Cola plans to invest $1.1 billion over five years in AI services through Microsoft Azure to improve supply chains, productivity, and marketing [15] Apple (AAPL) - Berkshire Hathaway invested$38 billion in Apple between 2016 and 2023, with the stake worth over $170 billion at the start of 2024 [8] - Apple Intelligence, launched in partnership with OpenAI, introduces transformative AI features like email summarization, proofreading, and image generation [9][16] - Siri now integrates OpenAI's ChatGPT, enhancing its capabilities [9] - Apple has over 2.2 billion devices worldwide, positioning it as a potential leader in consumer AI distribution [17] - Despite selling over half of its Apple shares in 2024, Apple remains Berkshire's largest holding at 25.8% of its portfolio [10][16]