For many of us, buying and selling stocks are occasional events. Others, however, engage in the event as frequently as every month or even more. Rep. Marjorie Taylor Greene, the Republican representative from Georgia, finds herself in the latter camp, consistently purchasing stocks every few weeks.
In the most-recent go round, Greene added to several established positions, including ASML (ASML -0.32%), Berkshire Hathaway (BRK.A -0.39%) (BRK.B -0.56%), Caterpillar (CAT -0.62%), Intel (INTC -0.69%), Microsoft (MSFT -1.73%), and Tesla (TSLA -4.95%). While it's not clear exactly how much Greene invested in each stock, her regulatory filing reveals that each transaction on Oct. 21 was valued between $1,001 and $15,000.
AI stocks remain top of mind
There's no denying that Greene is enthusiastic about loading up on artificial intelligence (AI) stocks. From semiconductor specialists to software companies that offer sophisticated AI tools, Greene expressed robust interest in AI stocks over the past year -- something again demonstrated in her latest string of stock purchases. For one, Greene increased her position in ASML, a leading manufacturer of equipment used in the production of semiconductors, just over two weeks after she bought shares on Oct. 4. The Peach State representative further increased her AI exposure through the purchase of Intel stock. Despite some concerns about Intel, because of increased competition as well as questions about the quality of the company's chips -- this marks Greene's third purchase of Intel stock in as many months, indicating that lawmaker is optimistic that the company will recover from its present challenges.
Microsoft is another AI name that found its way onto Greene's buy screen recently. From its Azure cloud-computing platform to its AI assistant Copilot, Microsoft has broad exposure to the burgeoning AI field. This most-recent buy of Microsoft stock complements Greene's other purchases in May and later in September.
Providing AI exposure in the form of autonomous driving, Tesla is another company that drew Greene's interest. There's no clear reason why Greene chose to add to her Tesla position (she had initially bought Tesla stock in September), but there are some possible explanations. For one, Greene may be taking a contrarian approach, dismissing skepticism that widely surrounded Tesla's recent robotaxi event. Alternatively, Greene may have anticipated a bump in the stock after the company reported its third-quarter 2023 financial results on Oct. 23.
Beyond AI with Berkshire Hathaway
Smart investors know that one of the most-effective strategies for long-term investing success is diversifying one's portfolio -- an almost universally recognized necessity. With her ample exposure to higher-risk investments in AI, Greene may have chosen to mitigate risk through the purchase of Berkshire Hathaway stock. Under the guidance of Warren Buffett, Berkshire Hathaway flourished for decades -- as well as its stock. Over the past 30 years, for example, the S&P 500 has provided a total return of about 1,430%, while Berkshire Hathaway's Class B stock soared about 1,890%.
Buying Caterpillar as it continues inching higher
Undeterred by Caterpillar stock's higher price on Oct. 21 (shares closed at $390.48), Greene added to a position that she initiated in March 2022 and added to in May 2024 -- two dates when shares were trading lower than their closing price on Oct. 21. As with her other purchases, it's not immediately clear why she chose to increase her position in the industrial stalwart, but there are some likely factors. In addition to achieving increased diversification, Greene may also be interested in boosting her passive-income stream. Caterpillar has demonstrated steadfast dedication to rewarding shareholders for decades. The company has paid a quarterly dividend since 1933, and it has increased its payout in each of the past 31 consecutive years.
Should you give a green light to the stocks Greene just purchased?
The market's appetite for AI stocks remains strong, and for those interested in feasting on some AI stocks themselves, ASML, Microsoft, and Tesla are certainly well worth diving in to deeper. At this point, however, many questions still remain around Intel, so only investors with a higher risk tolerance should consider it for now.
Alternatively, Berkshire Hathaway is almost always a worthy consideration for those looking to fortify their portfolios with a rock-solid investment, and Caterpillar is a worthwhile option for investors looking to growing their passive income.
Above all, though, investors should remember that it's critical for them to do their own due diligence and not blindly follow the stock picks of others.