Berkshire Hathaway Invests Big in Google at a Discount
Berkshire Hathaway's chief executive Greg Abel revealed that the conglomerate initially invested $10 billion in Alphabet (GOOGL) at a 6.5% discount, a decision he personally recommended. This was part of a larger investment strategy that involved buying into companies with strong AI capabilities.
Abel stated that the size and discount on the initial investment were discussed with Warren Buffett before the transaction closed 15 months ago. Berkshire Hathaway increased its stake in Alphabet by $17 billion during the second quarter, making it the company's third-largest equity holding.
The conglomerate now holds approximately 106 million Class A and Class C shares of Alphabet, worth around $36.6 billion. This investment is part of Berkshire Hathaway's efforts to capitalize on companies with significant AI presence.