Alphabet Is Now Part of the Dow. That's a Big Validation of Greg Abel's Boldest Berkshire Bet Yet.
The index originally intended to serve as a barometer of the United States' top industrial stocks now holds all new kinds of blue chip stocks.
Overview
It's official. Technology giant Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is now one of the 30 stocks that make up the Dow Jones Industrial Average, replacing Verizon Communications.
In and of itself, it isn't that big of a deal. Standard & Poor's (which manages the Dow) regularly swaps out the index's constituents to ensure this collection of blue chip stocks is a quality cross-section of the United States' economy.
Details
This most recent switch is a big deal, however, for another reason. That's the fact that it validates Berkshire Hathaway's (NYSE: BRKA)(NYSE: BRKB) recent investment in the very same stock, and points to its likely future.
Source
Originally published at www.fool.com.