Billionaire Warren Buffett Bought Only 1 New Stock in the Third Quarter -- and It Was the Cheapest of the "Magnificent Seven"

Core Insights - The article discusses the investment strategies of Warren Buffett, particularly his recent acquisition of Alphabet shares, highlighting its appeal to both cautious and aggressive investors [1][14]. Group 1: Investment Opportunities - Investors receive quarterly insights into the investment moves of successful investors, including Warren Buffett, who has a long history of market-beating gains [1][2]. - Buffett's investment philosophy focuses on value stocks, which are typically undervalued compared to their actual worth, leading to limited investments in high-valuation technology companies [3][6]. Group 2: Alphabet Investment - In the third quarter, Buffett opened a new position in Alphabet, purchasing 17,846,142 shares, which now constitutes 1.6% of his $267 billion portfolio, making it his 10th-largest position [8][7]. - Alphabet was identified as the cheapest among the "Magnificent Seven" tech stocks, trading at 23 times forward earnings estimates during the quarter [10][12]. Group 3: Valuation and Growth Potential - Alphabet's reasonable valuation and strong market position in internet search and cloud computing were significant factors in Buffett's decision to invest [13]. - The company is expected to benefit from growth in the artificial intelligence market, indicating potential for increased earnings in the coming years [14].