It’s always interesting to see what stocks some of the best investors in the world have decided to buy recently. And one stock in particular stands out in the latest data for Q4 2025.
The stock in question is Amazon (NASDAQ:AMZN). There are always differing views in the stock market, but investors seem to have dramatically different ideas about what to make of this one.
Buyers and sellers
During the last three months of 2025, Baupost Group – led by Seth Klarman – was buying Amazon shares. And that’s striking because of the company’s strategy and orientation.
Baupost is an investment firm with a long-term value strategy. And Klarman’s book on value investing is a dense academic tome that takes the importance of valuations incredibly seriously.
Amazon isn’t typically thought of as a classical value stock, which makes Baupost’s move interesting. But on the other side of the equation is Warren Buffett’s Berkshire Hathaway.
In Buffett’s final quarter as CEO, Berkshire offloaded over 90% of its stake in the online marketplace and cloud computing firm. And time will tell whether that was a good move.
It’s unusual to find value investors having such diametrically opposed ideas. The stock has fallen 12% since the end of the reporting period, but what should investors expect from here?
All-in on AI
Artificial intelligence (AI) creates an interesting dynamic for Amazon. Unusually, it’s both a threat and an opportunity for the company at the same time.
The risks are twofold. One is the potential challenge to its marketplace if users are turning to ChatGPT or Gemini to start shopping searches, instead of Amazon’s online marketplace.
Amazon, though, can offer customers something rivals can’t. Its scale means it can provide faster delivery and better convenience where buyers can find the things they need in one place.
The other is that the firm is set to spend $200bn this year, with the majority going on data centres. If AI demand comes in weaker than expected, this could result in big losses.
On the other hand, if things do turn out well, getting a huge return on an investment of that size could be a unique opportunity. And the stock falling appears to discount this possibility.
It’s also worth noting that Amazon is a major investor in Anthropic – the firm that’s been launching agentic AI plugins. So it also stands to benefit from the success of AI in another big way.
What I’m doing
Klarman buying while Buffett sells illustrates why investors should do their own thinking when it comes to buying stocks. Even the best in the business don’t always agree.
In terms of my own portfolio, I have a foot in both camps. I wasn’t buying the stock in Q4, but the falling share price means I’ve started to add to my stake in the company.
In the case of Berkshire, there’s a chance the firm might be buying again in the last six weeks. But it’ll be another three months before investors find out with the next release.
