Expert heralds investment in nonconventional AI companies

THEY CAN BE MORE AWARE. >> Reporter: YOU GOT IT. OF COURSE. CHERYL: WELL, THE CLOSING BELL IS JUST A FEW MINUTES AWAY HERE. WE HAVE NOW GOT EXACTLY FOUR TO GO. MARKETS ARE STILL CHARGING HIGHER. THE S&P 500 ON TRACK TO FINISH THE SESSION AT A RECORD HIGH. THE 26TH RECORD HIGH FOR THE YEAR. ALL THREE MAJOR INDICES EXPANDING SHARP GAINS FOR THE ENTIRE WEEK. SECOND UP WEEK IN A ROW FOR THE MARKETS. NOW TOMORROW BERKSHIRE HATHAWAY IS GOING TO BE REPORTING SECOND QUARTER EARNINGS, AND ALL EYES ARE GOING TO BE ON CEO GREG ABEL AS HE CONTROLS BERKSHIRE'S $400 BILLION FORTUNE AND BALANCE SHEET, EARNINGS ARE GOING TO BE $5.11 A SHARE ESTIMATED, REVENUE GROWING TO $88.98 BILLION. WHILE WALL STREET WON'T GET THE FULL REVEAL UNTIL NEXT WEEK, OUR COUNTDOWN CLOSER SAYS THE STOCK IS A BUY. I WANT TO BRING IN INTERNATIONAL AT SENTS ADVISORY CEO ED COFRANCISCO WITH $5 BILLLLION IN ASSETS UNDER MANAGEMENT. YOU LIKE BERKSHIRE, BUT WHICH SHARE ARE YOU TELLING PEOPLE TO BUY? >> WE LIKE THE B SHARE. THAT'S THE WAY WE TYPICALLY INVEST OUR CLIENTS IN IT. AND, YOU KNOW, IN THIS ENVIRONMENT, IN THE ELEVATED GEOPOLITICAL RISISK AND POTENTIL MARKET ROTATION, BERKSHIRE'S COMBINATION OF INSURANCE FLOAT, OPERATING BUSINESSES, DRY POWDER FUNCTIONS AS BOTH A HEDGE AND A COMPOUNDER. IT DOESN'T CHANGE THE A.I. NARRATIVE. IT OWNS PIECES OF THE PHYSICAL AND FINANCIAL INFRASTRUCTURE THAT ENABLE IT WHILE MAINTAINING THE FLEXIBILITY TO DEPLOY CAPITAL. CHERYL: OKAY. SO WE'LL BE WATCHING, OF COURSE, FOR ANY NEWS OF -- OUT OF BERKSHIRE TOMORROW. WE CAN BRING THAT TO OUR VIEWERS ON MONDAY WHEN LIZ IS BACK. LET'S TALK ABOUT TODAY. OBVIOUSLY, THE MARKETS HAVE HAD -- THERE'S BEEN A LOT OF VOLATILITY, A LOT OF INTEREST IN A.I., , BUT THEN THAT ROTATION BEGAN OUT OF A.I. THEN COMES ALONG SECOND QUARTER EARNINGS, AND THE NUMBERS HAVE BEEN STRONG. WE'RE TALKING ABOUT 50%, 52% OF THESE COMPANIES HAVE BEEN BEATING. IT'S BEEN A VERY STRONG QUARTER. >> YES, IT HAS, CHERYL. AND, Y YOU KNOW, WE STILL LIKE A.I. WE LIKE THE NONCONVENTIONAL PLAYS IN A.I. WE LIKE THE COMPANIES THAT SUPPORT A.I., THE COMPANIES THAT PROVIDE THERMAL COOLING, ELECTRICITY. IT WAS VERY INTERESTING TO HEAR ONE OF YOUR PREVIOUS GUESTS, ZACK DELL, TALK ABOUT POWER AND ELECTRICITY. WE CAN CREATE CHIPS ALL WE WANT. WHAT WE NEED IS A LOT OF ELECTRICITY AND ABILITY TO DELIVER IT IN ORDER TO KEEP GROWING A.I. SO WE LIKE COMPANIES THAT SUPPORT IT. BERKSHIRE HAS THEIR HAND IN THAT. BERKSHIRE HAS THEIR HAND IN FINANCING ALL THIS. PLUS WE GO BACK TO HAVING THEIR POWDER DRY, THEY'RE SITTING G ON ALMOST $400 BILLION COMING INTO THIS QUARTER. WE'LL SEE HOW MUCH THEY SPENT IN STOCK BUYBACKS AND PURCHASES, LIKE A PRIVATE PLACEMENT OF ALPHABET FOR $10 BILLION -- CHERYL: YOU ALSO LIKE OIL. I'VE GOT A MINUTE LEFT BEFORE THE BELL -- >> YEAH, WE CAME ON WITH LIZ ABOUT FIVE, SIX MONTHS AGO WHEN THE TROUBLES FIRST STARTED IN IRAN, AND WE WERE ASKED WHAT DO WE LIKE MOST. ANYTIME THERE'S AN ECONOMIC CRISIS THAT THREATENS THE SUPPLY OF OIL, INVEST IN BIG OIL. I WISH ALL YOUR VIEWERS HAD LISTENED TO US, I DON'T KNOW IF THEY DID. IF THEY DID, THEY'VE DONE VERY, VERY WELL FOR THEMSELVES. WITH THE ON AGAIN/OFF AGAIN CONFLICT IN IRAN, WE STILL LIKE BIG OIL. CHERYL: ALL RIGHT. WE ARE WATCHING A MARKET THAT'S BEEN COMING BACK, AND IT'S A STRONG DAY FOR THE MARKET TOLD. THE JOBS REPORT, NOT GOOD NEWS, BUT MARKETS SAW MAYBE THERE'S LESS OF A CHANCE OF A HIKE IN SEPTEMBER. MAYBE THE FED STAYS PAT IN SEPTEMBER. MAYBE A CUT COMES THIS YEAR. THE MARKET HAS CHANGED, THE SENTIMENT HAS CHANGED. ED COFRANCISCO, THANK YOU FOR BEING WITH ME. BEST WEEK SINCE APRIL IS WHAT WE'RE SEEING FOR THESE MARKETS. ALL POSITIVE AT THE END OF THE SESSION, ANOTHER RECORD CLOSE FOR THE S&P 500. NUMBER 26. THE DOW NEAR A REC