Despite Warren Buffett's Imminent Departure, Berkshire Hathaway Piled Into an AI Stock That's Been a 10-Bagger Since Its IPO in 2014

Core Insights - Warren Buffett will step down as CEO of Berkshire Hathaway, marking a significant leadership change for the company, with Greg Abel taking over while Buffett remains as chairman [1][8] - Berkshire Hathaway has recently made a notable investment in an artificial intelligence stock that has significantly appreciated since its IPO in 2014 [2][8] Investment Activity - In the third quarter, Berkshire initiated a new position in Alphabet, purchasing over 17.8 million shares valued at more than $4.3 billion [4] - Alphabet is part of the "Magnificent Seven," a group of stocks that have benefited from the rise of AI, with Google experiencing approximately a 1,000% increase in value since its IPO in 2014 [5] Legal and Market Context - Alphabet faced a lawsuit from the U.S. Department of Justice alleging monopolistic practices, which resulted in a ruling that recognized Google as a monopoly but did not require divestiture of its Chrome web browser [6][7] - The ruling was seen as favorable for Google, allowing it to maintain its market position and continue partnerships that support its search engine dominance [7]