Berkshire Hathaway Just Invested $10 Billion in Google at a Private Placement Price.
Here’s Why Retail Investors Should Pay Attention When Greg Abel took over for Warren Buffett as CEO in January, many were wondering what the new Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) would look like
It hasn’t taken long to see an early picture, as Abel has worked quickly to leave his mark. Berkshire’s new CEO has been deploying the company’s cash hoard, including multiple investments in Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). For investors, this shows not only that a new era of Berkshire is in full swing but also that Berkshire is offering a ringing endorsement of Alphabet.
Not business as usual The first signal worth watching from this deal with Alphabet is Berkshire’s aggressiveness. Since taking over for Buffett as CEO, Berkshire has exited multiple positionsand has agreed to acquire the homebuilder Taylor Morrison Home in an all-cash deal worth roughly $6.8 billion. In addition, Berkshire’s investing in Alphabet may indicate more openness to tech investments in the future.