Warren Buffett may very well be the best living investor on the planet right now. Indeed, there’s a reason why Berkshire Hathaway (NYSE:BRK-B) shareholders meetings are absolutely packed every single year (with the exception of the one held during COVID pandemic lockdowns). Though you can learn a great deal about how the Oracle of Omaha invests by reading the slew of books and articles that are out there, it can be tough to invest just like Buffett unless, of course, you’re willing to simply place a massive bet on Berkshire shares. Arguably, betting big on Berkshire is the best way to bet on Buffett.
However, some critics may believe that Buffett’s investing philosophy is no longer sufficient to beat the market. Given that Berkshire is just a few big days away from being a $1 trillion company again, beating the market will be more challenging for Berkshire from here on out.
That said, if market valuations retreat and Berkshire can effectively deploy capital on tremendous market weakness (think a market crash or correction that causes an influx in Sunday calls to Buffett and Berkshire), perhaps Berkshire still has the agility to outpace the S&P 500 despite its size.
Of course, only time will tell. In the meantime, investors looking for a new way to bet on the Oracle of Omaha may have one with the new AI-powered ETF, which aims to channel Warren Buffett’s timeless wisdom.
Key Points About This Article
- A slew of intriguing AI ETFs are hoping to invest like the gurus they’re trained on.
- For now, I expect the real investment legends to have the edge over their AI-trained counterparts.
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The Rise of AI-Powered ETFs Aiming to Invest Like the Gurus
Indeed, Buffett has shared much wisdom with the world over the past several decades. The big question is whether an AI model can use the invaluable data to act and make moves like the Oracle himself.
While such technology is intriguing, I have my doubts about whether a Buffett AI can outdo the real Buffett. No matter how capable or impressive it is, it’s a simulation and nothing that can magically get inside the head of the great Buffett, let alone beat the stock market consistently over time.
Either way, Buffett fans should give the Intelligent Omaha ETF a glance. The ETF, which was developed by Intelligent Alpha, is trained on Buffett’s annual letters, interviews, and other statements made to the media. So, if you’ve ever wondered, “What would Buffett buy in this environment?” perhaps it’s worthwhile to peek underneath the hood of the AI-powered Buffett ETF (the ticker symbol AIWB) just out of curiosity.
Although there’s no shortage of public statements and materials provided by Buffett, one could argue that an AI model could be better-equipped by feeding off of the data from other investment legends as well. Indeed, Buffett isn’t the only investing guru that’s worth following.
It’s Not Just Buffett That Could Power the Boldest AI ETFs of the Future
Apart from Warren Buffett, Intelligent Alpha is also exploring an AI ETF that’s trained by other investment greats such as David Tepper and Stanley Druckenmiller. For passive investors enthused by the premise, the Intelligent Livermore ETF (LIVR) could be worth checking out.
That said, I would temper my expectations as we need many years (preferably more than a decade) of track record before we can jump to any conclusions about how well the AI model taps into the minds of the investment legends they aim to invest like.
Though novel, I wouldn’t view AI-powered ETFs trained on guru data as being able to match or even top the likes of a Buffett or Tepper. Even if AI finds a way to beat the markets consistently, the secret will be out, and investors may find it tougher to punch their ticket to the AI guru boom once the potential at alpha is recognized by Mainstreet.
In any case, AI ETFs are an incredibly interesting trend that’s sure to garner considerable attention and headlines over the coming years. The AI boom is here, and with that, a slew of roboadvisors, robot managers, and all the sort will be on the way, hungry for investment dollars of the most curious of investors.
Personally, I think there are better ways to invest like (or with) the legends. Follow their teachings, train yourself, and make your own stock picks. If that’s too much effort, perhaps just buying Berkshire is sufficient.
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