Warren Buffett, known for avoiding tech stocks, doesn’t own Nvidia but has indirectly benefited from its gains through Berkshire Hathaway’s holdings in S&P 500 ETFs. Despite having relatively small positions in these ETFs, Berkshire has seen gains as Nvidia’s stock soared. Additionally, the rise of major cloud service providers like Amazon, Microsoft, and Alphabet, who are Nvidia’s main customers, has been attributed to the increasing adoption of AI. Buffett’s Berkshire owns shares in Amazon and NEAM, a subsidiary, has positions in Alphabet and Microsoft, further showing indirect benefits from Nvidia’s success.
Investors may have also profited from Nvidia’s gains through ETFs or mutual funds with positions in the company or other mega-cap stocks like Amazon, Alphabet, and Microsoft. While not as rewarding as owning Nvidia shares directly, this method offers comfort to those who missed out on buying the stock earlier. Investing in S&P 500 ETFs allows investors to benefit from the growth of companies like Nvidia as they gain higher weightings in the index.
Overall, while Buffett may not own Nvidia stock, he and other investors have still benefited indirectly from the company’s success through various holdings and investments. This underscores the importance of diversification and strategic investing to capture gains from high-performing stocks like Nvidia.
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https://www.fool.com/investing/2024/06/23/warren-buffett-doesnt-own-nvidia-heres-how-hes-pro/