Alphabet Stock Rises: Buffett’s Berkshire Stake Explained
- * Warren Buffett (The oracle of Omaha) will remain chairman of the board.
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* Warren Buffett (The oracle of Omaha) will remain chairman of the board. This is a brief,initial statement.
* Alphabet’s valuation: Despite a strong rally in 2025, Alphabet’s stock is valued lower than its AI-focused competitors.
* Alphabet (GOOG): 26.9 times next year’s earnings
* Microsoft (MSFT): 31.8 times next year’s earnings
* Broadcom (AVGO): 40.7 times next year’s earnings
* Nvidia (NVDA): 31.8 times next year’s earnings
* Why Alphabet is Attractive to berkshire: The lower valuation, combined with Alphabet’s strong cash flow and market dominance, likely made it an appealing investment for Buffett’s Berkshire Hathaway.
* Analyst Opinion: Angelo Zino (CFRA) believes Berkshire is more agreeable investing in Alphabet due to its high free cash flow, attractive valuation (around 22x 2027 EPS), and healthy growth.