No. of Recommendations: 3
Also, Berkshire appears to be adding to its significant position in Alphabet at an elevated valuation. Do we want to be buying when Alphabet is selling?
Alphabet is raising cash to build out compute, with both debt and now, equity.
Yes, the equity is interesting, because why not issue more debt? Maybe the demand for compute is so high that they're going to be raising cash however they can. This is only the beginning.
My guess is Berkshire thinks Google is one of the best places today to soak up their cash, and the position is an Apple-like forever holding.
Granted, I don't like Google's valuation here either (I trimmed my position recently), but if they're holding for the next few decades then paying up becomes less important over time.
