I bought Alphabet shares today for under $320
First purchase after I called it last year at $195 and it doubled this year hitting a high of $399 per share.
It’s quarterly earnings were good, outlook solid but investors spooked by the increased investment in AI infrastructure.
Having the infrastructure is key to long-term success if Alphabet wants to be leader in the Ai economy.
Warren Buffett when asked about Berkshire Hathaway $31 billion investment in Alphabet:
“Looking at the record, these companies have a higher probability of being winners than 90~95% of the stuff Wall Street sells. I’ve never seen a Wall Street report that digs into a company’s actual internal rate of return. They only ask about the next quarter. It’s ridiculous.”
So when Alphabet reported negative FCF for the first time in 22 years yesterday, it wasn’t a surprise to me and shouldn’t have been to the street.
It’s the exact reason Buffett bought the shares, to own the railroads of the Ai economy!
This post is for informational purposes only and is not financial or investment advice. Investing involves risk. Do your own due diligence.
Image source: FT