Warren Buffett's Berkshire Successor, Greg Abel, Just Bought More of This Magnificent Tech Stock
The purchase of $10 billion worth of Alphabet stock through a private placement was Berkshire Hathaway's biggest deal since Greg Abel took over as CEO.
Overview
Greg Abel, Warren Buffett's successor as CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), made few changes to Berkshire's portfolio when he first took the role in January, but over the past month, he has made some major moves.
As you may recall, last month, Berkshire announced plans to acquire homebuilder Taylor Morrison for $8.5 billion. However, while this represents the first major acquisition of the Abel era, last month, Berkshire committed to an even larger capital investment, agreeing to purchase $10 billion in newly issued Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) shares in a private placement.
Details
Berkshire is no stranger to such private deals. Buffett executed plenty of them during his 60-year tenure. However, while Buffett's private deals typically involved financially distressed, "old economy" companies, Abel is making a different type of wager. That is, he's upping Berkshire's bet on a "Magnificent Seven" stock, perhaps as a means to increase the conglomerate's exposure to the artificial intelligence (AI) megatrend. And this deal could affect investors' perception of Berkshire Hathaway stock moving forward.
Source
Originally published at www.fool.com.