Market fear is off the charts right now. The indexes just slid under their 50-day moving average and everyone’s acting like the sky is falling—panic, doomcharts, the whole thing.
But then—what’s this?
Berkshire Hathaway just dropped $4.9B into Alphabet. They almost never make tech bets of this size. What is Buffett thinking?
Go back to his old line: “Be fearful when others are greedy and greedy when others are fearful.”
He’s running that playbook again. Everyone is panicking. He’s buying.
And the valuation case isn’t complicated. $GOOG’s trailing P/E is 27.34. Forward P/E? 25.06. Five-year PEG: 1.57. For anyone who isn’t a finance obsessive, that translates to: “This is a reasonable valuation at a good price.”
But there’s an even bigger implication: this isn’t just a Google trade. This is an AI trade. Google is OpenAI’s real competitor. Maybe not #1 today, but absolutely #
... Show more...Market fear is off the charts right now. The indexes just slid under their 50-day moving average and everyone’s acting like the sky is falling—panic, doomcharts, the whole thing.
But then—what’s this?
Berkshire Hathaway just dropped $4.9B into Alphabet. They almost never make tech bets of this size. What is Buffett thinking?
Go back to his old line: “Be fearful when others are greedy and greedy when others are fearful.”
He’s running that playbook again. Everyone is panicking. He’s buying.
And the valuation case isn’t complicated. $GOOG’s trailing P/E is 27.34. Forward P/E? 25.06. Five-year PEG: 1.57. For anyone who isn’t a finance obsessive, that translates to: “This is a reasonable valuation at a good price.”
But there’s an even bigger implication: this isn’t just a Google trade. This is an AI trade. Google is OpenAI’s real competitor. Maybe not #1 today, but absolutely #2, and critically, they’re profitable, public, and heavily incentivized to grow AI because AI directly threatens the core search business that prints their money.
Buffett isn’t doing what Michael Burry did. He didn’t take a $1B YOLO short against AI leaders and shut down his operation when it blew up. He picked the most undervalued major player in the space and bought aggressively.
That’s value investing. Wait for fear. Buy the likely leader when it’s cheap.
And to everyone shouting “tech bubble”: when does Buffett buy into bubbles? Almost never. If anything, he exploits them.
Does that mean you should copy him? No. Buffett can be wrong. Anyone can be wrong. Don’t outsource your thinking.
But based on what I see, Buffett’s move makes sense. It’s disciplined, it’s rational, and it’s the opposite of Burry’s meltdown.
