Add as a preferred source on GoogleAlphabet's Third-Quarter Results Put Berkshire Stake Under Scrutiny
Berkshire committed about $10 billion to a June private placement near $350 a share; Alphabet traded between $280 and $290 in early November.
Alphabet's third-quarter results put Berkshire Hathaway's stake and CEO Greg Abel's investment decisions under scrutiny after earnings per share of about $2.12 fell short of expectations and free cash flow turned negative amid heavy artificial intelligence spending.
Berkshire committed about $10 billion in June to a private placement of Alphabet shares priced near $350 each. Its total Alphabet holding was about 106 million shares. In early November, Alphabet traded between $280 and $290, below the placement price.
Berkshire also invested about $930 million in Bending Spoons, an Italian technology company, as Abel expanded the conglomerate's technology exposure.
Abel became CEO on Jan. 1 after former CEO Warren Buffett stepped down. Buffett became chairman emeritus in September. Berkshire held about $365.5 billion in cash and short-term U.S. Treasury holdings at the end of the second quarter.