Buffett's Grip on Berkshire Remains Tight Despite CEO Handover
Warren Buffett is still calling the shots at Berkshire Hathaway despite stepping down as CEO in December. According to Bloomberg News, Buffett personally spearheaded a $10 billion Alphabet share acquisition in Q2, making it the conglomerate's third-biggest position.
The move has raised eyebrows given the company's portfolio now lists Alphabet above Coca-Cola, with a market value of $37.77 billion compared to Coca-Cola's $32.51 billion.
Buffett warned investors in May that they are behaving like gamblers and treating equities as casino bets, which is reflected in the S&P 500's CAPE ratio reaching 40.6 in July - a peak not seen since 2000's dot-com bubble.
The CAPE metric has historically preceded average three-year declines of 30%, with some analysts projecting 50% earnings expansion for S&P 500 constituent companies in Q2.