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Announced Tue, 7 Jul · 21:41 IST

Bust or boom ahead? Here's why Warren Buffett successor's $10 billion bet on big tech has divided experts

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AI summary

Berkshire Hathaway, under new CEO Greg Abel, is investing $10 billion in Alphabet as part of the Google parent's $80 billion equity raise for AI plans. Alphabet already accounts for about $16.6 billion of Berkshire's holdings, making it the second-largest tech bet after Apple. While Alphabet shares have doubled in the past year and the company boasts strong margins and ROE above 35%, experts are divided on the valuation, with the stock trading at about 25x forward earnings, higher than Buffett's usual preference.