"While a near-$5 billion bet in a single quarter is sizeable, it is noteworthy that Berkshire has built up positions over the span of many quarters, rather than having an entire helping within one single quarter. As the AI and tech pullback were to get nastier going into December, perhaps the price of admission might make shares of Alphabet even more attractive."
"And I'm more inclined to think Berkshire won't miss out on the next big AI rally. However, for the time being, it seems like Berkshire won't be as moved as investors turn against tech due to their lofty AI spending. In any case, I think Berkshire's Alphabet bet should give shareholders the confidence and enthusiasm that Berkshire will be ready to ride the AI revolution higher, perhaps in more of a risk-off way."
Berkshire Hathaway purchased a roughly $4.9 billion stake in Alphabet last quarter, a significant move that likely had Buffett's approval despite Weschler and Combs' involvement. The investment echoes Berkshire's long-standing position in Apple, which remains the conglomerate's largest public holding even after recent trims. Berkshire typically accumulates positions over multiple quarters rather than in a single large purchase. The timing amid an AI and tech pullback could present opportunities to add to the Alphabet stake if prices decline. The move indicates greater exposure to AI while retaining a cautious, risk-off posture in portfolio management.
Read at 24/7 Wall St.
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