Berkshire Hathaway Has Invested $23 Billion in This Stock Since Greg Abel Took Over as CEO. History Says There May Be More to Come
2026-08-04 04:30
•Prosper Junior Bakiny •The Motley Fool
•••••• •••••••••• Axe Cap view
Berkshire Bets Big on Alphabet—What It Means for SA Investors
Berkshire Hathaway's $23 billion buy into Alphabet signals confidence in tech growth, offering lessons for local investors watching USD/ZAR.
Since Greg Abel took the helm at Berkshire Hathaway, the $23 billion pumping into Alphabet has grabbed attention globally. This isn’t just a bet on any tech stock—it’s one backed by solid earnings growth and a booming cloud business doubling down on AI infrastructure. Alphabet’s valuation at 18.1 times expected earnings looks reasonable compared to the broader tech sector’s average of 20 times, which suggests the market may be underestimating its potential. For South African investors, the lesson isn’t to rush into Alphabet directly but to watch how this shapes the USD/ZAR flow. Big moves in US tech often strengthen the dollar against emerging market currencies like the rand, pressuring our import-dependent sectors. Locally, companies with sizeable USD costs or earnings—like MTN and AngloGold—are worth keeping an eye on amid rand swings. The risk? A sudden regulatory crackdown on global tech or a US market sell-off could quickly reverse gains and disrupt flows. this is just our opinion and not financial advice
Watch the USD/ZAR pair closely and consider trimming rand-exposed stocks vulnerable to dollar strength, like MTN and AngloGold, while remaining cautious on new tech bets. Wait for clearer signals before adding local tech or retail positions.
- USD/ZAR
- MTN
- AngloGold Ashanti
- US regulatory tightening on big tech
- Sudden sell-off in global growth stocks impacting USD/ZAR
6/10
Since becoming CEO, Greg Abel has overseen Berkshire Hathaway's $23 billion investment in Alphabet stock, making it one of the conglomerate's five largest holdings. Based on historical patterns of high-conviction investing in companies like Apple and Visa, Berkshire may continue buying Alphabet shares. The investment is supported by Alphabet's strong Q2 financial results, robust cloud business growth, competitive advantages, and attractive valuation at 18.1x forward earnings compared to the tech sector average of 20x.
Our take is based on reporting first published by The Motley Fool.
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