Warren Buffett’s investment arm Berkshire Hathaway is on an accumulation spree of Alphabet’s Class A Google stock (NASDAQ: GOOGL). The latest 13F quarterly filing with the SEC shows that the investment arm has purchased another $17 billion in GOOGL. Berkshire Hathaway currently owns around $38 billion in Alphabet, making the equity its third-largest holding.
The newly appointed CEO Greg Abel is heavily bullish on Google stock and has been going all-in on the asset. The massive increase in stake comes at a time when Alphabet is penetrating the AI sector with multiple launches including Gemini, Cloud Enterprise, DeepMind, Tensor Processing Units (TPUs), and TensorFlow, among many others. This makes the company more lucrative than its competitors in the same field.
Also Read: Alphabet’s Google Owns 28 Different Stocks, Latest 13F Filing Shows
Stanley Druckenmiller Buys $120 Million Worth of Google Stock
Apart from Warren Buffett’s Berkshire Hathaway, Stanley Druckenmiller has also opened positions in Google stock. The billionaire investor just made one of his boldest moves by accumulating 336,300 shares worth $120 million, according to the latest SEC filing. The Druckenmiller family office is closely monitoring Alphabet’s prospects and could buy more if things go right. Billionaires are increasingly taking entry positions in GOOGL and are confident about the company’s future.
Another promising aspect of Alphabet is that the firm has a backlog of $462 billion in fulfilling its AI deployments. The revenues are locked in for the next five years, up until 2030-31. This is what makes Google stock favorable to hold and accumulate, as the long-term trajectory has a plan in sight. However, Wall Street is concerned about the increased AI capital expenditure from $180 billion to $205 billion in 2026.
The billionaires and rich-list see this as a stepping stone for Alphabet to strengthen its dominance further. The increased capex allows them to fine-tune their products and make them better than their competitors. Also, Google stock trading below the $350 level is still considered cheap, for all that it has to offer. This makes GOOGL a lucrative asset, and the timeframe of 5 to 10 years can make traders’ portfolios swell.