"Warren Buffett is still at the helm of Berkshire Hathaway, at least for the next few weeks. He will be ceding control to incoming CEO Greg Abel, who will guide the company forward to its next chapter. Some in the investment community are already considering the real possibility that Abel and his team have had some hand in the company's pivot toward considering its recent Alphabet purchase,"
"To be sure, the market appears to agree that Alphabet looks undervalued relative to its past and future growth prospects. With a leading position in the AI race and plenty to like about a serious cash cow of a search business, Alphabet has one of the most solid balance sheets of any Magnificent 7 company, and also one of the best cash flow growth profiles of its peers."
Berkshire Hathaway purchased about $4.3 billion of Alphabet (GOOG) stock last quarter, and the stake has gained value amid Alphabet's price appreciation. Warren Buffett remains CEO through an imminent handover to Greg Abel, and some investors suspect Abel's team may have influenced the decision. The market sees Alphabet as undervalued relative to its growth prospects. Alphabet leads in AI, operates a highly profitable search business that generates strong cash flows, and maintains a robust balance sheet. The valuation is higher than before, yet attractive on a relative basis versus peers.
Read at 24/7 Wall St.
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