From Fortune · Jason Ma · · 1m 30s
Berkshire Hathaway becomes safe haven as AI stocks tumble
Investors fleeing the AI boom are buying Berkshire Hathaway stock, which is up 13.6% this year while the S&P 500 gains just 7.8%. The conglomerate's own portfolio is shifting away from finance toward industrial holdings.
In brief
Investors fleeing the AI boom are buying Berkshire Hathaway stock, which is up 13.6% this year while the S&P 500 gains just 7.8%. The conglomerate's own portfolio is shifting away from finance toward industrial holdings. Berkshire Hathaway stock outperformed the market as investors fled AI stocks, while the company…
Berkshire stock soars as tech falters
Berkshire Hathaway's class B stock is up 13.6% this year, beating the S&P 500's 7.8% gain. Since October first, Berkshire has soared 14% while the S&P has fallen about 4%.
Portfolio gains plunge despite stock rally
Berkshire's investment gains plunged 46% from a year earlier to 9.4 billion dollars in the third quarter. Top holdings remained Alphabet, American Express, Apple, Bank of America and Coca-Cola.
CEO Abel shifts portfolio toward industry
Berkshire bought 2.4 billion dollars of stocks and sold 2.8 billion dollars during the quarter. It grew stakes in commercial and industrial equities by 2.3 billion dollars and cut finance holdings by 400 million dollars.
Buybacks accelerate under new leadership
CEO Greg Abel, who took over from Warren Buffett at the start of this year, repurchased 9.6 billion dollars of stock in the third quarter, more than double the second quarter pace.
Political shift threatens AI buildout
The Democratic sweep of gubernatorial races in data center hot spots like Texas, Ohio and Georgia is expected to slow down the AI buildout and the overall economy.
What to remember
Berkshire Hathaway stock outperformed the market as investors fled AI stocks, while the company accelerated buybacks and shifted its portfolio toward industrial businesses.
