Berkshire Hathaway (BRK.B), the holding company of legendary investor Warren Buffett, has revealed a new position in Google parent company Alphabet (GOOGL).
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In a regulatory filing with the U.S. Securities and Exchange Commission (SEC), Berkshire Hathaway revealed that it has taken a stake in GOOGL stock worth $4.3 billion, making it the 10th largest equity holding of Buffett’s company.
The large stake in Alphabet is surprising given Buffett’s traditional value investing philosophy and reluctance to take positions in high-flying technology stocks. The only other so-called “Magnificent Seven” mega-cap technology stocks that Berkshire Hathaway currently owns are Apple (AAPL) and Amazon (AMZN).
Taking a Risk?
While Apple remains Berkshire’s largest holding, comprising 24% of the company’s stock portfolio, the Amazon position is small at just 0.07% of the equity holdings. The new position in Alphabet stock is nearly double the size of Berkshire Hathaway’s position in Amazon.
There is immediate speculation that one of Buffett’s two investing lieutenants, Ted Weschler and Todd Combs, opened the new position in GOOGL stock. Buffett has said one of them initiated the investment in Amazon back in 2019. Buffett himself has said often that he prefers financial stocks such as American Express (AXP) and consumer stocks such as Coca-Cola (KO) that he understands.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 30 Buy and seven Hold recommendations issued in the last three months. The average GOOGL price target of $312.29 implies 12.98% upside from current levels.
Read more analyst ratings on GOOGL stock