Prediction: This Magnificent Artificial Intelligence (AI) Stock Will Become Berkshire's Next Forever Holding
Over the last few quarters, Berkshire Hathaway has been aggressively buying a particular "Magnificent Seven" stock.
Overview
Under Warren Buffett's leadership and now continuing with Greg Abel at the helm, Berkshire Hathaway has long sought out exceptional businesses capable of compounding value over decades rather than chasing short-term market movements.
In years past, Buffett described certain portfolio investments as forever stocks -- stakes in companies that are so fundamentally strong that Berkshire intends to own them indefinitely. These types of ownership interests are in businesses that have proven, durable competitive advantages, predictable cash flow, and an ability to reinvest earnings at high returns on an annual basis.
Details
I think Berkshire's decision to steadily increase its position in Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) reflects a deep commitment to long-term ownership that has defined the investment conglomerate for decades. Let's take a look at what makes Alphabet so unique and assess how it could evolve into Berkshire's next forever stock.
Source
Originally published at www.fool.com.