Smart investors know that one of the most effective strategies for long-term investment success is diversifying one’s portfolio – an almost universally recognized necessity. Because of her extensive exposure to riskier investments in AI, Greene may have chosen to mitigate risk by purchasing Berkshire Hathaway shares. Under the leadership of Warren Buffett, Berkshire Hathaway thrived for decades – and so did its shares. In the last 30 years, for example, S&P 500 delivered a total return of about 1,430%, while Berkshire Hathaway’s Class B shares gained about 1,890%.

Undeterred by the higher price of Caterpillar shares on October 21 (the stock closed at $390.48), Greene added to a position that she opened in March 2022 and expanded in May 2024 – two dates which the shares traded lower than their closing price on October 21st. 21. As with her other purchases, it is not immediately clear why she chose to expand her position in the industrial company, but there are a few likely factors. In addition to greater diversification, Greene may also be interested in increasing her passive income stream. Caterpillar has demonstrated its unwavering commitment to rewarding its shareholders for decades. The company has paid a quarterly dividend since 1933 and has increased it for the past 31 consecutive years.

The market’s appetite for AI stocks remains strong, and for those who want to enjoy some AI stocks themselves, it’s definitely worth diving deeper into ASML, Microsoft and Tesla. At this point, however, there are still many unanswered questions surrounding Intel, so only investors with a higher risk tolerance should consider it for now.

Alternatively, Berkshire Hathaway is almost always a worthwhile consideration for those looking to bolster their portfolio with a solid investment, and Caterpillar is a worthwhile option for investors looking to increase their passive income.

Above all, investors should remember that it is crucial for them to conduct their own due diligence and not blindly follow others’ stock picks.

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*Stock Advisor returns as of October 21, 2024

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Berkshire Hathaway, Microsoft and Tesla. The Motley Fool recommends Intel and recommends the following options: long $395 January 2026 calls on Microsoft, short $405 January 2026 calls on Microsoft, and short $24 November 2024 calls on Intel. The Motley Fool has a disclosure policy.

Marjorie Taylor Greene’s stock buying boom continues. Here are 6 stocks she bought. was originally published by The Motley Fool