Generated Title: Buffett's Bet on Google: Genius or Geriatric Gamble?
Alright, alright, alright. Berkshire Hathaway finally dove headfirst into the Google pool. Or Alphabet pool, whatever. Color me surprised. I mean, the Oracle of Omaha, buying into a tech company now? It’s like seeing your grandpa suddenly rocking a mohawk and a Slayer t-shirt.
Shares jumped 5%? Of course they did. Anything Buffett touches turns to gold, even if it's fool's gold. But let's be real, Buffett himself probably didn't even click the "buy" button. It was probably one of his lieutenants, Combs or Weschler. Those guys are probably whispering sweet nothings about AI and cloud profitability into Buffett's ear while he's trying to enjoy his prune juice.
The "Value" Proposition: Seriously?
FactSet says Alphabet trades at 25.5 times next year’s earnings. Compared to Microsoft, Broadcom, Nvidia… okay, yeah, maybe it is a "value" play in this insane market. But "value" is relative, ain't it? It's like saying a $500 hamburger is a "value" compared to a $1000 one. Still overpriced garbage if you ask me.
And this whole "free cash flow potential" that CFRA's Angelo Zino is blathering about? Please. Every tech company is promising the moon these days. It's all buzzwords and hype until the next shiny object distracts everyone. Remember the metaverse? Exactly.
The Ghost of Missed Opportunities
Buffett himself admitted he missed the Google boat. "Didn’t know enough about technology," he said back in 2018. Geico was paying Google $10 a click way back when! Ten bucks! Now, try buying an ad for less than a small fortune. Talk about leaving money on the table.
But here’s the thing: is this investment some kind of… atonement? Like he’s trying to right a past wrong? Or is he just bored and decided to throw a few billion at something shiny because why not? I mean, Berkshire's got Apple as their biggest holding. So, they're already in the tech game, but Apple is basically a luxury brand these days, not some cutting-edge disruptor.
Glenview Trust Company's Bill Stone thinks this means Berkshire is changing its approach to tech as leadership transitions. Greg Abel taking over in January... Maybe he's the one pushing for this. Maybe Buffett's just nodding along, saying "Sure, kid, whatever you say." Alphabet rallies after Berkshire reveals stake. Why Buffett’s firm likely bought it - CNBC
Speaking of transitions, my damn cable company keeps raising its rates. It's highway robbery, I tell ya. I swear, if they jack it up again, I'm switching to streaming everything. Maybe I should buy some Roku stock... Nah, too volatile. I'll stick to complaining on the internet.
The AI Angle: Hype or Reality?
Alphabet's stock is up 46% this year because of AI and cloud stuff. Of course. AI is the new black. Everyone's scrambling to slap "AI" on their products, even if it's just a glorified chatbot. Is Google really leading the charge, or are they just good at marketing? I’m still waiting for AI to do my laundry and pay my taxes, but maybe that's just me.
Berkshire already had a stake in Amazon, initiated by the younger guys. So, they're not completely allergic to tech. But Amazon is… well, Amazon is everything. They sell everything, they stream everything, they even try to deliver everything by drone. Google's still mostly about ads, search, and that weird collection of side projects that never quite take off.
So, What's the Real Story Here?
Look, I'm not saying this is a bad investment. Alphabet's got a ton of cash, a massive user base, and they're probably not going anywhere anytime soon. But this feels… late. Like showing up to the party after everyone's already gone home and the cleaning crew is sweeping up the confetti. Maybe Buffett's just proving he can still surprise us. Or maybe he's finally lost his touch. Only time will tell, offcourse.
