Warren Buffett Stepped Back From Berkshire Hathaway With a Bang; Its Investment in 1 AI Stock Now Tops $30 Billion

Warren Buffett initiated a $30 billion investment in Alphabet for Berkshire Hathaway, consisting of $10 billion in newly issued stock and $20 billion in open-market purchases. Buffett acknowledged it was a mistake for Berkshire to avoid Alphabet for so long, citing the attractiveness of Google Search and the company's strong AI infrastructure growth through Google Cloud, which grew 82% year-over-year. Alphabet trades at a reasonable valuation with an EV/EBIT ratio of 26.