Greg Abel Tied 30% of Berkshire's $348 Billion Portfolio to 2 AI Stocks
That's not a bad thing at all.
Overview
When you think about Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), it's nearly impossible not to recall the long stewardship of Warren Buffett, the legendary investor who led the conglomerate for six decades. Buffett was famed for his buy-and-hold value investing style, taking large positions in blue chip companies like Bank of America, Coca-Cola, and American Express.
Now that Buffett is in his well-earned retirement, Berkshire has new leadership under Greg Abel. And the CEO has wasted no time shaking things up, closing 16 positions in Berkshire's portfolio and trimming the number of companies Berkshire invests in to 29. He also loaded up on Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), buying 36.4 million shares in the first quarter, and then signing off on a private placement to buy another $10 billion worth of shares.
Details
Nearly 30% of Berkshire's legendary value-oriented portfolio is now tied up in two artificial intelligence stocks: Alphabet and Apple (NASDAQ: AAPL). And while a 30% allocation to two AI stocks may seem aggressive -- especially for a company like Berkshire Hathaway -- its portfolio is actually more balanced than it has been in years.
Source
Originally published at www.fool.com.