"Berkshire purchased 17.8 million shares in Google's parent company, worth $4.3 billion as of September 30, its third-quarter portfolio update revealed last week. The stake surprised many of Buffett's close followers, as the famed bargain hunter has eschewed technology stocks for most of his career. Buffett - or one of his two investment managers, Ted Weschler and Todd Combs - may have bet on Alphabet before it surged, Russo told Business Insider."
"Its stock price rose nearly 40% in the three months ending September 30, from under $180 to $244, and has climbed another 17% since then to clear $285. If Berkshire bought in early last quarter, it may have only paid $3.1 billion or so for a position worth $5.1 billion as of Monday's close."
"Even after its recent jump, Alphabet continues to trade at a "below-market" price-to-earnings ratio, Russo said, hailing the company as a "remarkably solid and strong business.""
"He said that Alphabet has long shown a "capacity to suffer" - a willingness to make long-term investments that constrain short-term profits, and not cave into"
Berkshire Hathaway acquired 17.8 million shares in Alphabet, totaling $4.3 billion as of September 30. Gardner Russo & Quinn held a $1.1 billion Alphabet position and a $1.8 billion Berkshire stake, making up 31% of its $9.3 billion US stock portfolio. The Berkshire investment surprised many because Buffett historically avoided technology stocks. Alphabet's price jumped nearly 40% in the quarter and another 17% afterward, leaving a potential early-quarter cost of about $3.1 billion for a position valued near $5.1 billion. Alphabet still trades at a below-market price-to-earnings ratio and shows a capacity for long-term investment. Tom Russo expresses greater concern about soaring US debt and dollar threats than a crash in AI stocks.
Read at Business Insider
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