These 2 Numbers Explain Why Warren Buffett and Bill Ackman Love Alphabet, Amazon, Microsoft, and Meta

Warren Buffett and Bill Ackman are investing heavily in AI hyperscalers based on two key metrics: return on invested capital (ROIC) and weighted average cost of capital (WACC). Hyperscalers are expected to generate ROIC above 24% while their WACC sits around 8%, creating significant upside potential. Despite near-term negative free cash flow from massive AI infrastructure spending, analysts project these companies could generate over $500 billion in combined free cash flow by 2030, making current valuations attractive.