Why Isn't Warren Buffett Buying Alphabet (Google) Stock Hand Over Fist?

Motley Fool2022-12-23

What does Warren Buffett like in a stock? You could put a solid business moat high on the list. High returns on invested capital (ROIC) would be up there, too, as would an outstanding management team....

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Comments

Desmond669
2022-12-24
Desmond669
Hmm
Swordmerlin
2022-12-24
Swordmerlin
Buy n keep when cheap
- Desmond669:
  Ok
SilentWarrio
2022-12-24
SilentWarrio
Cool
Tanyl
2022-12-23
Tanyl
Buy call on Google for long term
Andrewinho
2022-12-23
Andrewinho
😱😱😱

Leave a comment

105

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You could put a solid business moat high on the list. High returns on invested capital (ROIC) would be up there, too, as would an outstanding management team....</p>\n\n<a href=\"https://www.fool.com/investing/2022/12/22/warren-buffett-isnt-buying-alphabet-google-stock/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SG9999018857.SGD","symbol_name":"United Global Quality Growth Fd Cl Acc SGD-H","start_time":0,"source_url":"https://www.fool.com/investing/2022/12/22/warren-buffett-isnt-buying-alphabet-google-stock/","article_id":"2293588795","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2293588795","pubTimestamp":1671804074,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Buffett regrets not investing in Google earlier. He could experience regret in the future for not buying the stock now.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SG9999018857.SGD":"United Global Quality Growth Fd Cl Acc SGD-H","SG9999014898.SGD":"United Global Quality Growth Fund Dis SGD","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","BK4538":"云计算","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU1066051498.USD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM2\" (USD) INC","LU1046421795.USD":"富达环球科技A-ACC","LU0444971666.USD":"天利全球科技基金","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","BK4574":"无人驾驶","LU0149725797.USD":"汇丰美国股市经济规模基金","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4561":"索罗斯持仓","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","LU0882574139.USD":"富达环球消费行业基金A ACC","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","BK4581":"高盛持仓","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","LU0528227936.USD":"富达环球人口趋势基金A-ACC","BK4548":"巴美列捷福持仓","SG9999014914.USD":"UNITED GLOBAL QUALITY GROWTH (USDHDG) INC","LU0238689110.USD":"贝莱德环球动力股票基金","LU0109391861.USD":"富兰克林美国机遇基金A Acc","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","LU0079474960.USD":"联博美国增长基金A","LU0056508442.USD":"贝莱德世界科技基金A2","BK4532":"文艺复兴科技持仓","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","GOOG":"谷歌","LU0061474960.USD":"天利环球焦点基金AU Acc","GOOGL":"谷歌A","BK4534":"瑞士信贷持仓","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0234572021.USD":"高盛美国核心股票组合Acc","SG9999014906.USD":"大华全球优质成长基金Acc USD","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","BK4525":"远程办公概念","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4566":"资本集团","BK4080":"零售业房地产投资信托","LU0251142724.SGD":"Fidelity America A-SGD","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU1066053197.SGD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM3\" (SGDHDG) INC"},"translate_title":"为什么巴菲特不买进Alphabet的股票？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GOOG":0.9,"GOOGL":0.9},"content_text":"What does Warren Buffett like in a stock? You could put a solid business moat high on the list. High returns on invested capital (ROIC) would be up there, too, as would an outstanding management team. And we can't leave out an attractive valuation.Google parent Alphabet checks off all of those boxes and dominates its core search market. It's a strong challenger in others, as well, notably including cloud hosting. Alphabet's ROIC consistently trounces the levels generated by Buffett's own Berkshire Hathaway. The company's CEO Sundar Pichai has an exceptional track record.Then there's valuation. Alphabet stock has plunged nearly 40% year to date. It has never been this cheap, based on its projected future free cash flow. So why isn't Buffett buying Alphabet stock hand over fist?Buffett's initial hesitationThere were several reasons why Buffett didn't initially buy what was then Google stock. Most importantly, he didn't think the company's business was within his circle of competence. Buffett has avoided many tech stocks for this very reason.The legendary investor also wasn't sure about how sustainable Google's moat was. Years ago, it wasn't nearly as clear that Google would be as dominant over the long run in search as it ultimately became.These factors undoubtedly made it challenging for Buffett to project Google's earnings and assess its valuation. He wrote to Berkshire Hathaway shareholders in 2013:We first have to decide whether we can sensibly estimate an earnings range for five years out, or more. If the answer is yes, we will buy the stock (or business) if it sells at a reasonable price in relation to the bottom boundary of our estimate. If, however, we lack the ability to estimate future earnings -- which is usually the case -- we simply move on to other prospects.Buffett followed this process with Google years ago. And using his own words, he moved on to other prospects.Then and nowDoes this past reluctance explain Buffett's current decision not to invest in what is now Alphabet? There's certainly an argument to be made that it shouldn't.Back in 2017, Buffett told CNBC that he \"should have had better insight into Google.\" Berkshire's GEICO insurance was a heavy advertiser on the company's search engine. Buffett admitted that it was \"an extraordinary business\" that claimed \"some aspects of a natural monopoly.\"Surely, the Oracle of Omaha understands Alphabet's business much better now than he did in the past. He has also gone along with his two investment managers, Ted Combs and Todd Weschler, in adding several tech stocks to Berkshire's portfolio, including Amazon and Snowflake.However, it's quite possible that Buffett is still uneasy about projecting Alphabet's future earnings. The company's YouTube business is threatened, to some extent, by rivals such as TikTok. Some maintain that OpenAI's ChatGPT chatbot could be \"a Google killer.\"Toes in the water, head in the sand?Buffett does have his toes in the water with Alphabet. Earlier this year, Berkshire initiated a position in Markel, which is sometimes referred to as a \"baby Berkshire\" because of its similarities with Berkshire Hathaway. And it owns over 3.1 million shares of Alphabet.But this indirect ownership obviously isn't in the same ballpark as Buffett buying Alphabet shares outright. So why isn't he loading up on the stock?My view is that it's for the same reasons why he didn't buy the stock years ago. The company is still outside his circle of competence, which makes it hard for him to assess its valuation.What's more difficult to understand, though, is why Combs and Weschler haven't moved to invest in Alphabet. The company truly does check off a lot of boxes that they, like Buffett, like to see.TikTok and ChatGPT have a long way to go to even have a chance at knocking Alphabet off its perch. There's a real chance that TikTok could be banned in the U.S. Alphabet has its own AI chatbot, LaMDA, which some believe is more advanced than ChatGPT.Although Buffett has his toes in the water with Alphabet, his head (or the heads of his investment managers) could be in the sand. Now appears to be a once-in-a-decade opportunity to buy this exceptional stock.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9922745181,"gmtCreate":1671852569344,"gmtModify":1676538603879,"author":{"id":"3562118563279867","authorId":"3562118563279867","name":"Desmond669","avatar":"https://static.tigerbbs.com/e2484115c94d3471cb46f20ea7598b4a","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3562118563279867","authorIdStr":"3562118563279867"},"htmlText":"Hmm","listText":"Hmm","text":"Hmm","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9922745181","repostId":2293588795,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9922701568,"gmtCreate":1671840086054,"gmtModify":1676538601214,"author":{"id":"3582338758553096","authorId":"3582338758553096","name":"Swordmerlin","avatar":"https://community-static.tradeup.com/news/1f836008e90c916e86b10677e7b767fd","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3582338758553096","authorIdStr":"3582338758553096"},"htmlText":"Buy n keep when cheap","listText":"Buy n keep when cheap","text":"Buy n keep when cheap","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9922701568","repostId":2293588795,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":105322216,"gmtCreate":1671852563555,"gmtModify":1671852574228,"authorId":3562118563279867,"author":{"id":3562118563279867,"idStr":"3562118563279867","authorId":3562118563279867,"name":"Desmond669","avatar":"https://static.tigerbbs.com/e2484115c94d3471cb46f20ea7598b4a","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.05.31","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9922701568,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok<span class=\"Apple-converted-space\"> </span></span>","text":"<span class=\"s1\">Ok<span class=\"Apple-converted-space\"> </span></span>","html":"<span class=\"s1\">Ok<span class=\"Apple-converted-space\"> </span></span>"}],"langContent":"EN"},{"id":9922454162,"gmtCreate":1671834704356,"gmtModify":1676538600450,"author":{"id":"3580689210488653","authorId":"3580689210488653","name":"SilentWarrio","avatar":"https://static.tigerbbs.com/c904a9b7d64fe6eb5230d2a57a74ffee","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"3580689210488653","authorIdStr":"3580689210488653"},"htmlText":"Cool","listText":"Cool","text":"Cool","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9922454162","repostId":2293588795,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9922548738,"gmtCreate":1671809264225,"gmtModify":1676538597477,"author":{"id":"4087109808120260","authorId":"4087109808120260","name":"Tanyl","avatar":"https://static.tigerbbs.com/174329973340cf0f5b68791ee5b08afd","vip":1,"crmLevel":9,"crmLevelSwitch":1,"idStr":"4087109808120260","authorIdStr":"4087109808120260"},"htmlText":"Buy call on Google for long term","listText":"Buy call on Google for long term","text":"Buy call on Google for long term","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9922548738","repostId":2293588795,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9922541991,"gmtCreate":1671809005113,"gmtModify":1676538597268,"author":{"id":"3581563418944392","authorId":"3581563418944392","name":"Andrewinho","avatar":"https://static.tigerbbs.com/3127e2bc40ab23064a5187a00a63e19b","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581563418944392","authorIdStr":"3581563418944392"},"htmlText":"😱😱😱","listText":"😱😱😱","text":"😱😱😱","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9922541991","repostId":2293588795,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":105,"commentSize":5,"repostSize":0,"favoriteSize":2,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 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