Warren Buffett typically steers clear of tech stocks, including Nvidia (NASDAQ: NVDA). However, through Berkshire Hathaway’s investment in two S&P 500 ETFs, Buffett has indirectly profited from Nvidia’s success. Berkshire initiated positions in the SPDR S&P 500 ETF Trust and the Vanguard S&P 500 ETF in late 2019, holding small positions in both. Although Nvidia represents only 7.25% of the S&P 500, its growth has benefited major cloud service providers like Amazon, Microsoft, and Alphabet, all of which are Nvidia’s key customers. Berkshire owns Amazon shares and NEAM, a subsidiary, holds positions in Alphabet and Microsoft. By holding these ETFs or investing in mega-cap stocks like Amazon, Alphabet, and Microsoft, investors have also benefitted from Nvidia’s success. While not as rewarding as owning Nvidia stock directly, these indirect investments can still generate profits. Ultimately, investing in S&P 500 Index ETFs provides exposure to high-performing stocks like Nvidia as their market caps increase.
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https://finance.yahoo.com/news/warren-buffett-doesnt-own-nvidia-071000011.html
Despite not owning Nvidia, Warren Buffett has still managed to profit from the artificial intelligence (AI) stock’s significant gains.
