Warren Buffett's $863 Million "Secret" Portfolio Dumped Alphabet and Broadcom, but Has Over 17% of Invested Assets in This Proven Moneymaking Strategy
2026-10-07 09:06
•Sean Williams •The Motley Fool
•••••• ••••••• Axe Cap view
Buffett’s Quiet Shift: From AI Hype to Index Funds
Berkshire’s New England Asset Management trims AI stocks and boosts S&P 500 ETFs, signalling caution on tech exuberance.
Warren Buffett’s NEAM recently pared down nearly half of its Alphabet shares and almost entirely sold off Broadcom. This isn’t about screaming ‘sell tech’ but a clear signal the AI-driven rally might be overheating. Buffett’s team seems wary that the froth around AI valuations could burst, hurting even solid companies. Instead, they’re doubling down on S&P 500 index funds, which have historically handed investors reliable growth over decades. For South African investors, this matters because when global tech cools, the rand often weakens against the dollar as capital seeks safer havens. Rand strength usually supports local consumer shares like Shoprite and Woolworths, but with US tech jitters, consider the rand vulnerable. Patience is warranted before buying into Africa’s tech growth story via Naspers or Prosus. If the AI optimism re-ignites, or new breakthroughs occur, this cautious move might look like missing out. this is just our opinion and not financial advice
Trim tech-heavy exposure to stocks like Naspers and Prosus who lean on global tech sentiment. Shift some offshore allocation into US or global index ETFs via rand-hedged products to reduce currency risk while capturing steady returns.
- Naspers
- Prosus
- USD/ZAR
- Sudden renewed enthusiasm for AI boosts tech stocks and Naspers/Prosus
- Rand strengthens unexpectedly, altering local asset dynamics
7/10
Warren Buffett's lesser-known portfolio managed through New England Asset Management (NEAM), a Berkshire Hathaway subsidiary, has significantly reduced positions in AI stocks Alphabet and Broadcom during Q2, citing concerns about AI bubble valuations. Instead, the portfolio has allocated over $149 million (17.3%) to S&P 500 index funds (SPY and VOO), reflecting Buffett's long-standing recommendation for retail investors to invest in low-cost index funds that have generated positive returns over every 20-year rolling period since 1900.
Our take is based on reporting first published by The Motley Fool.
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