No. of Recommendations: 7
This is an interesting thread for me as I sold out off my very large GOOG stake and have replaced most of it with BRK, including some final swaps / Brk additions after BRK’s GOOG purchase. The BRK position is mostly a defensive one in lieu of holding cash. But I’m also on board with Abel to date - seems like the right man at the right time.
I don’t have any particular insight to share on either, though. My concern with Google was that I did not expect more than middling returns from here, for the foreseeable future, given the capex game they’ve been compelled to play. I also wouldn’t discount how big the capital outlay over the next 5-10 years will be — this isn’t a one and done, and one’s math of future profits changes materially depending on how one accounts for aging chips.
Too hard pile for me given the changed risk/reward post run up, including at $350, but I am a big fan of the move from BRK’s perspective. Google has proved it’ll come out the other side of AI a winner and increased profits should follow. Brk has been underexposed to tech and is sitting on too much cash (I’ll only start to worry about impatience if the purchases are of lower quality from a 5-10 year perspective or if cash returns to the 150-200 mark in this period of exuberance). The moves give them a decent slice of another railway of the tech world. If I had the limited options that comes with holding 400 billion cash I’d still be holding.
