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2026-07-31 08:30 • The Motley Fool Positive Axe Cap view: Selective

Berkshire Hathaway has significantly increased its Alphabet position, making it the fifth-largest holding in its portfolio at 8.1%. This marks Berkshire's first major bet on an AI stock, with the company investing over $21 billion this year. However, Alphabet's massive $200+ billion annual capex spending on AI infrastructure has turned free cash flow negative and halted stock buybacks, raising questions about whether the investment will deliver adequate returns compared to Berkshire's Apple position.

Axe note: Berkshire Hathaway’s sizable move into Alphabet reflects AI optimism but raises classic value questions.

2026-07-31 08:25 • The Motley Fool Positive Axe Cap view: Selective

A $25,000 investment in Disney stock would generate approximately $379 in annual dividend income based on the current $1.50 annualized dividend. Disney stock trades at a modest 14x forward earnings multiple and has been stuck in a trading range for three years, down 51% from its all-time high. However, the company shows improving fundamentals with revenue growth of 7% year-over-year and net income nearly tripling since Q2 2023. Investors will focus on the Aug. 5 earnings report for signs of margin improvement and growth, particularly in park attendance and streaming profitability.

Axe note: Disney’s solid earnings momentum contrasts with its 51% drop from highs, with limited direct impact on the JSE.

2026-07-31 08:15 • The Motley Fool Positive Axe Cap view: Selective

A critical shortage of high-bandwidth memory (HBM) chips is intensifying across the semiconductor industry as AI demand far outpaces supply. Memory manufacturers are gaining significant pricing power with multiyear contracts at premium rates, but investors should remain cautious as the memory sector is historically cyclical and prone to boom-bust cycles.

Axe note: The surge in AI demand tightens high-bandwidth memory supply, boosting chipmakers but risking volatility.