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

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.

Buffet's secret AI stocks

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.

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1. Broadcom

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.

2. Microsoft

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.

3. Alphabet

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.

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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.

FAQs:

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.