The ‘English Warren Buffett’ Just Dumped Half His Alphabet Stake

Core Insights - Terry Smith, founder and CEO of Fundsmith, is known for his value-oriented investing style and has recently been selling stocks amid market volatility [2][3] - Fundsmith manages approximately $17.1 billion in assets and has reduced its stake in Alphabet by over 44% in the fourth quarter, selling about 2.8 million shares [3][4] Company Performance - Alphabet's revenue for Q4 rose 18% to $113.8 billion, with net income increasing 30% to $34.5 billion [4][6] - Google Cloud revenue surged 48% to $17.7 billion, driven by demand for AI infrastructure [4][6] Market Reaction - Despite strong earnings, Alphabet's stock dropped 11% following guidance for 2026 capital expenditures of $175 billion to $185 billion, nearly double the previous year's level [5][6] - The stock is down approximately 5% year-to-date as of mid-February, trading around $298 per share after reaching an all-time high of $349 [5]