No. of Recommendations: 11
“Think of Coke and American Express, and remain calm.”
Both were already fountaining cash as cornerstones of the American economy, and both were bought with a margin of safety. Buffett was not willing to make the same mistake with Apple as he did with Coke, hence the trimming. Alphabet, on the other hand, is being purchased at rich valuations on a price to sales basis, and who knows what their capex will be going forward. Maybe this is a brilliant move and Google, along with OpenAI and Anthropic, will earn surplus profits for decades to come. Or maybe it’s a speculation.
I’d rather speculate myself and rely on Berkshire’s continued positioning as the Fort Knox of American capitalism.
