Warren Buffett Just Confirmed That Berkshire's Alphabet Stake Was His Idea. Why the Stock Still Looks Like a Buy
An endorsement from Buffett makes the Alphabet buy case even more compelling.
Overview
Famed investor Warren Buffett is usually not one to seek out recognition, but in a recent interview, the Oracle of Omaha took credit for Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) taking a large stake in Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Buffett has never been known as a tech investor, so when this value-oriented guru takes a big stake in a leading tech company, the stock should probably be on your list of stocks to strongly consider.
Berkshire first took a position in Alphabet in the third quarter of last year, right before Buffett was set to retire at the end of 2025. It added to that position earlier this year when it invested $10 billion in a private placement to help Alphabet raise money to build out its AI infrastructure.
Details
In the interview, Buffett said the key to investing was finding businesses that can earn a high return on capital for a long period of time. He and current Berkshire CEO Greg Abel appear to believe that Alphabet can do this with its AI infrastructure investments, and there is good reason to believe this will be the case.
Source
Originally published at www.fool.com.