Committed to securing re-election to Congress, Rep. Marjorie Taylor Greene, the Republican congresswoman from Georgia, took time out of her schedule to make some adjustments to her investment portfolio before Election Day. In early November, she went on a buying spree, picking up shares of several artificial intelligence stocks (AI) in addition to those from other industries.
The additions included Advanced Micro Devices(NASDAQ: AMD), Apple(NASDAQ: AAPL), BerkshireHathaway (NYSE: BRK.A)(NYSE: BRK.B), DigitalRealtyTrust(NYSE: DLR), MetaPlatforms(NASDAQ: META), and Tesla(NASDAQ: TSLA). While it's not clear exactly how much Greene invested in each stock, her regulatory filing reveals that each transaction on Nov. 1 was valued between $1,001 and $15,000.
A genuine commitment to artificial intelligence
There's no denying that Greene is incredibly bullish on the future of AI, consistently buying shares of companies that offer various sorts of exposure to the burgeoning field. AMD, for example, first made its way onto Greene's buy screen in 2022.
More recently, she picked up shares of the semiconductor maker this past May, lowering her average trade price thanks to a slight market sell-off after the company reported third-quarter 2024 financial results. Whereas shares closed at $164.66 on May 21, they ended the trading session on Nov. 1 priced at $141.86.
Like AMD, Apple is a position that Greene steadily built, having now bought it three times in 2024. Just prior to her buying Apple stock, the company reported strong fourth-quarter 2024 financial results.
In addition to strong year-over-year revenue and earnings growth, the company emphasized its push into AI with its Apple Intelligence tool that will be available on the iPhone, iPad, and Mac.
Broadening her AI exposure, Greene increased her position in Digital Realty Trust, a real estate investment trust (REIT) specializing in data centers, where the high computing load required of AI programs is handled. Digital Realty Trust provides Greene with a steady -- and secure -- passive income stream.
Currently, the REIT offers a 2.7% forward dividend yield, and the company generated sufficient free cash flow to cover its dividend for the past decade. Its investment-grade balance sheet provides additional assurance that the dividend isn't in jeopardy of being cut.
DLR dividend per share (annual); data by YCharts.
Speaking on the third-quarter 2024 conference call, CEO Mark Zuckerberg confirmed that Meta Platforms is benefiting from the company's adoption of AI, stating that he and the rest of management, "estimate that there are now more than 3.2 billion people using at least one of our apps each day, and we're seeing rapid adoption of Meta AI and Llama [the company's generative AI model], which is quickly becoming a standard across the industry."
Yet another AI stock on Green's list recently was Tesla. While some may speculate that her interest is related to the growing relationship between Elon Musk and President-elect Donald Trump, it's important to recognize that this isn't Greene's first rodeo with Tesla stock.
In fact, her purchase of the stock in early November was the fourth time in 2024 that she parked the automaker's shares in her portfolio. Besides the AI exposure that the company's full self-driving feature offers, Tesla is developing the humanoid robot Optimus, which relies heavily on AI programming.
Keeping things grounded with Berkshire Hathaway
Building positions in innovative industries such as AI has the potential to provide tremendous gains in one's investments. But experienced investors also appreciate the fact that grounding one's holdings with a tried-and-true winner like Berkshire Hathaway is a smart way to reduce the risks associated with speculative investments in AI.
It doesn't provide dividend income, but Berkshire Hathaway stock succeeded at growing shareholder value considerably over time thanks to the savvy leadership of Warren Buffett.
Is now a good time to warm up to Greene's stock picks?
With the market's ebullience in the time since Election Day, many of Greene's stock picks are now trading at steep valuations, so those looking for stocks in the bargain bin are out of luck.
Many AI stocks, however, have been trading at rich valuations for months now, so those interested in them shouldn't be dissuaded. The stocks of industry leaders like AMD, Apple, Digital Realty Trust, Meta Platforms, and Tesla may have expensive price tags, but they're all excellent ways to gain AI exposure. Alternatively, Berkshire Hathaway is a worthy consideration for anyone looking to fortify a portfolio with a proven winner.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $23,295!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,465!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $434,367!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of November 11, 2024
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Berkshire Hathaway, Digital Realty Trust, Meta Platforms, and Tesla. The Motley Fool has a disclosure policy.
