Post by @gritcapital

Warren Buffett just put his name behind one of Berkshire Hathaway’s biggest technology bets. Buffett confirmed that he initiated Berkshire’s investment in Alphabet, a stake now worth nearly $21 billion. He also admitted that overlooking Google earlier was a mistake. Now, Buffett appears willing to look past Alphabet’s rapidly rising AI expenses. Berkshire also committed another $10 billion through a private placement designed to support the company’s AI infrastructure buildout. His reasoning? Alphabet’s track record makes it more likely to emerge as an AI winner than the vast majority of investments promoted on Wall Street. This is not Buffett abandoning value investing. It is Buffett betting that Alphabet’s competitive advantages, cash generation and execution can justify the enormous cost of the AI race. Would you follow Buffett into Alphabet?