Berkshire's Post-Buffett Era Gets Off To Rocky Start As AI Bets Stumble

Detailed summary

Berkshire's Post-Buffett Era Gets Off To Rocky Start As AI Bets Stumble With Warren Buffett gone for not even a year, Berkshire Hathaway is already facing questions over its…

With Warren Buffett gone for not even a year, Berkshire Hathaway is already facing questions over its investment decisions. Under new CEO Greg Abel, the conglomerate has made a multibillion-dollar push into artificial intelligence, only to see some of its biggest bets stumble as enthusiasm for the technology fades, according to Bloomberg.

In his first year at the helm, Abel has committed $10 billion to Google parent Alphabet and another $930 million to Italian technology group Bending Spoons, marking a shift from Buffett's traditionally cautious approach to technology investments.

But the timing has raised concerns. Alphabet shares have fallen more than 24% since June, slipping below Berkshire's purchase price, while Bending Spoons has also retreated following an initial rally.

Still, analysts say Abel may be taking a longer-term view, much like Buffett did with his highly profitable Apple…

Opening of the article, excerpted from ZeroHedge. To read the rest, open the article on the publisher's site.