The Top Under-the-Radar AI Plays Today
Warren Buffett is buying “old school” stocks … or is he? … look for AI Survivors turning into AI Appliers … who wins in a battle of Walmart vs Big Tech?
On Friday, shares of Constellation Brands (STZ), owner of Corona, Modelo, and Robert Mondavi, popped more than 6% in after-hours trading.
Behind the surge was news that Warren Buffett had taken a sizeable stake in the company in the fourth quarter (more than 5.6 million shares).
Now, Constellation is a strong company with some beloved brands, but it’s not exactly a poster child for today’s hottest investment theme – artificial intelligence.
Perhaps the Berkshire Hathaway filing included additional news of Buffett piling into, say, Palantir?
Nope.
The 13F filing did reveal, however, that Buffett increased his stakes in two other “not-so-much-AI” companies: Domino’s Pizza and Pool Corp., a distributor of swimming pool supplies.
It’s hard to challenge Buffett’s market choices. After all, his multi-decade return speaks for itself (and he does own established “AI” companies such as Amazon). But still – aren’t we supposed to be loading up on AI plays today?
Yes – but not exclusively.
Global macro expert Eric Fry explained why in his latest issue of Investment Report, out last Friday:
Artificial intelligence has divided the investment world into three main categories: AI Creators, AI Appliers, and AI Survivors.
All three of these categories deserve a place in your investment portfolio.
It turns out that most investors are loading up on just one…maybe two categories.
