Warren Buffett found the most boring way to bet on AI

Warren Buffett became the world’s most famous investor by betting on the boring stuff. Buffett, 96, who stepped down as chairman of Berkshire Hathaway on Friday, spent six decades transforming the company into an investment powerhouse. Buffett invested in traditional companies embedded in the real economy with a focus on value, like insurance companies, railroads and public utilities. Buffett’s principle of investing in companies he understands continued despite the artificial intelligence boom enveloping markets. Berkshire Hathaway has investments in companies involved in the AI wave, like Apple and Alphabet, but didn’t chase momentum and put all its chips on high-flying AI companies. But Berkshire is still reaping lucrative benefits from the AI infrastructure buildout, and it’s the company’s boring bets that are paying off. The AI boom needs enormous amounts of energy, and the buildout to develop data centers has transformed demands for power, making utility companies key beneficiaries.