Warren Buffett's Successor, Greg Abel, Scooped Up Shares of These 4 Powerhouse Stocks in the Second Quarter
2026-07-16 09:06
•Sean Williams •The Motley Fool
••••••• •••••• Axe Capital view
Buffett’s Heir Bets Big on AI and Japanese Trading Giants
Greg Abel’s Q2 buys highlight AI growth in Alphabet and value in Japan’s trading houses.
Greg Abel’s recent purchases at Berkshire Hathaway are telling. The $10 billion investment in Alphabet isn’t just about owning a search giant; it’s a bet on AI-driven cloud growth, where margins now outpace ad revenue. For South African investors, Alphabet's success hints at the tech sector’s uneven global comeback, reflected in the rand’s reaction to USD strength—tech gains abroad don’t always translate locally. Meanwhile, Abel’s commitment to Mitsubishi, Marubeni, and Sumitomo underlines the appeal of deep-value stocks with shareholder-friendly policies. These Japanese names trade at much lower multiples than typical US tech firms but offer steady dividends and capital returns, something South African banks and resource stocks mimic. Watch Standard Bank or AngloGold Ashanti for parallels in durable cash flow and shareholder discipline. The sardonic twist is that while global investors chase innovation, patience and value still pay off in predictable sectors—something we often overlook here. This view may falter if US tech growth slows unexpectedly or Japan’s economy weakens further. this is just my opinion and not financial advice
I’d trim exposure to overvalued local tech-like proxies and increase holdings in defensive blue chips like Standard Bank, prioritizing dividend reliability over hype. Watch the USD/ZAR for entry points, buying under 18.50.
- Alphabet (GOOG)
- Mitsubishi (MTSUY)
- Standard Bank
- USD/ZAR
- US tech sector slowdown
- Weakness in Japanese economy impacting trading houses
7/10
Greg Abel, Warren Buffett's successor at Berkshire Hathaway, purchased shares of four major stocks in Q2 2026: Alphabet (via a $10 billion private placement for AI data center expansion), and three Japanese trading houses—Mitsubishi, Marubeni, and Sumitomo. These purchases align with Buffett's investment philosophy, with the Japanese companies offering attractive valuations and strong capital-return programs.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Sean Williams
Categories: Rates, Equities, Earnings, Capital Returns, Technology, AI, Semiconductors
Tickers: GOOG, GOOGM, GOOGN, MTSUY, MARUY, SSUMY
Sentiment: Positive - Berkshire invested $10 billion in Alphabet's equity offering for AI data center expansion. Alphabet holds a 91% monopoly in search, operates YouTube, and Google Cloud is growing at 63% with higher margins than advertising. Identified as an 'indefinite' holding by Buffett. Trading at attractive 21x trailing earnings with robust dividend yield (2.47%), strong capital-return programs, and shareholder-first philosophy.
Keywords: Greg Abel, Berkshire Hathaway, stock purchases, Q2 2026, artificial intelligence, Japanese trading houses, investment strategy
Insights:
- GOOG: Positive: Berkshire invested $10 billion in Alphabet's equity offering for AI data center expansion. Alphabet holds a 91% monopoly in search, operates YouTube, and Google Cloud is growing at 63% with higher margins than advertising.
- GOOGL: Positive: Berkshire invested $10 billion in Alphabet's equity offering for AI data center expansion. Alphabet holds a 91% monopoly in search, operates YouTube, and Google Cloud is growing at 63% with higher margins than advertising.
- GOOGM: Positive: Berkshire invested $10 billion in Alphabet's equity offering for AI data center expansion. Alphabet holds a 91% monopoly in search, operates YouTube, and Google Cloud is growing at 63% with higher margins than advertising.
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