Warren Buffett has backed a winner with his $4.3 billion Alphabet wager. The billionaire investor believes the search-and-advertising giant remains a solid and strong business, despite its recent surge in stock price.
Buffett’s Berkshire Hathaway built a significant stake in Google’s parent company last quarter, catching many of his close followers off guard. If Berkshire bought in early, it may have only paid $3.1 billion for a position worth $5.1 billion today.
Russo points to Alphabet’s “capacity to suffer,” or its willingness to make long-term investments that constrain short-term profits. He also praises the company’s commitment to funding speculative tech bets and its strong cash generation.
However, Russo is more concerned about soaring US debt and dollar threats than a crash in AI stocks. The national debt has nearly doubled within the past decade, and growing threats to the US dollar’s status as the world’s reserve currency could lead to financial disruption.
Russo warns that America’s leading position in the world could stymie further gains if it retreats from the global stage. He says never give consumers the opportunity to look elsewhere for satisfaction, echoing Buffett’s late business partner Charlie Munger.
Source: https://www.businessinsider.com/warren-buffett-berkshire-alphabet-google-stock-ai-tech-debt-dollar-2025-11