Berkshire Hathaway is the “anti-AI” stock pick, this investor says

ValueTrend Wealth Management president and chief portfolio manager Keith Richards says Berkshire Hathaway (Berkshire Hathaway Stock Quote, Chart, News, Analysts, Financials NYSE:BRK.B) offers investors a diversified “anti-AI” trade after the stock came under pressure following Warren Buffett’s succession announcement.

Speaking on BNN Bloomberg’s Market Call on June 16, Richards said Berkshire was hurt last year by concerns over the transition from Buffett to Greg Abel, but he believes the company’s underlying model remains intact.

“There was a ‘Warren premium’ built into it before,” Richards said. “Everybody was worried about Greg Abel, but he’s basically following the program.”

Richards said Berkshire remains attractive because of its cash position, rail and insurance assets, Apple stake and broad exposure to sectors that have been overlooked while investors focused heavily on AI.

“They’ve got lots of cash. They’ve got rails. They’ve got insurance,” he said. “They’re well diversified in stuff that’s been overlooked.”

Berkshire also announced May 31 that it would acquire homebuilder Taylor Morrison Home for about US$6.8-billion in cash, or US$8.5-billion including assumed debt.

Richards said the stock has already started to recover and could become a strong position if it breaks through resistance.

“We don’t predict, we just prepare,” he said. “If it doesn’t, we’ll just sell it and make a few bucks on it. But if it breaks through, this could be a great position.”

Richards said Berkshire’s appeal is partly that it is outside the crowded AI trade.

“Everything’s been about AI,” he said. “We think this is the anti-AI pick.”

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