Alphabet Inc (NASDAQ:GOOG) shares are up 3.3% ahead of the bell after Warren Buffett finally made the move that appears to go against his investment credo and may help soothe fears (albeit fleetingly) that the AI bubble is about to pop. Berkshire Hathaway has unveiled a new stake worth about US$4.3 billion, a rare tech foray for a firm better known for its banks, insurers and industrials.
Alphabet's shares rose 5.5% in premarket trading on Monday after Berkshire Hathaway disclosed a stake in the tech giant, marking what could be one of the final major moves by the conglomerate under the leadership of Warren Buffett.
The leaders of these two major corporations have made their positions on stock splits clear. The good news is that they don't need this catalyst to outperform the market.
Buffett has been training Greg Abel for his new leadership role at Berkshire for two years. Abel sees his responsibility to protect and grow shareholder funds.
Buffett is no longer writing annual letters or speaking at Berkshire's annual meeting of shareholders. Berkshire continues to hold a ton of cash because Buffett and his team don't see compelling buys now.
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