Buffett’s Bet on Alphabet: He’s Timed Magic, Again, At 95 Years Old

Core Viewpoint - Warren Buffett is set to step down as CEO of Berkshire Hathaway, but he continues to make significant portfolio moves, particularly increasing his investment in Alphabet, indicating a bullish outlook on the tech stock [1][2]. Investment Strategy - Berkshire Hathaway has increased its investment in Alphabet to $4.9 billion, reflecting a more optimistic stance than previously indicated during the 13-F filing [2]. - The decision to bolster the Alphabet position comes after Berkshire trimmed its Apple holdings, suggesting a strategic shift to maintain exposure in the tech sector [5][6]. Financial Performance - Alphabet reported an earnings per share (EPS) of $3.10 last quarter, significantly exceeding expectations of $2.33, which may have influenced Berkshire's increased investment [5]. Market Trends - The current investment in Alphabet aligns with broader trends in data growth, cloud usage, and artificial intelligence, positioning Alphabet as a high-quality investment opportunity within these sectors [7]. - The tech-driven economy is prompting even conservative investors to recognize the importance of investing in growth-oriented companies like Alphabet [6]. Long-term Outlook - Alphabet's central role in AI and cloud computing technology enhances its growth prospects, making it an attractive option compared to other large-cap stocks [7].