:max_bytes(150000):strip_icc()/GettyImages-1140938011-c47e1709e8dc48e7b406386c7225df3c.jpg "Berkshire Hathaway Doesn't Hold Nvidia Stock—Will Warren Buffett Come to Regret it?")
Berkshire Hathaway Doesn't Hold Nvidia Stock—Will Warren Buffett Come to Regret it?
Why doesn’t Warren Buffett, who many consider to be the smartest investor in the world, own a stake in Nvidia Corp. (NVDA)? After all, Goldman Sachs traders recently referred to it as “the most important stock on planet earth.”
It’s likely because taking a position in the chipmaker—despite blockbuster growth fueled by excitement surrounding opportunities tied to artificial intelligence—would go against the fundamental principles of investing that the chief executive officer of Berkshire Hathaway espouses.
Buffett is known to be a value investor, not big on newcomers and focused on simple and easy-to-understand businesses, like Coca-Cola (KO) and American Express (AXP). He looks for securities with prices that are low based on intrinsic worth, and focuses on companies as a whole rather than the whims of the market. He has said he generally avoided tech stocks, and according to Berkshire's most recent 13F filing for the fourth quarter, the company held no stake in Nvidia.
Berkshire has, however, taken large positions in Apple (AAPL) and Amazon.com (AMZN) in recent years, well after those stocks had experienced enormous gains. In the case of Amazon, Buffett expressed regret for not taking an early stake, saying he failed to appreciate its potential and that it cost people at Berkshire a lot of money.
