Okay, so Warren Buffett—or more likely, one of his underlings—dumped $4.3 billion into Alphabet (GOOGL). Big deal. The market’s all aflutter, acting like this is some kind of divine signal to back up the truck and load up on Google stock. Give me a break.
Berkshire Hathaway buying GOOGL stock doesn't magically erase the fact that Europe's breathing down Google's neck again. This time, the EU's Digital Markets Act is the weapon, and the target is Google's "site reputation abuse policy." Translation: Europe thinks Google's being a bully to news sites.
And if the EU decides Google's been naughty? We're talking fines of up to 10% of their worldwide turnover. Last year, that was $385.5 billion. Do the math. That's potentially a $77.1 billion slap on the wrist. Sure, Google can probably afford it, but it's hardly a reason to celebrate and run out to buy more google stock.
The "Oracle" Can Be Wrong (Shocker)
Let's be real: Buffett ain't infallible. Remember when he and Munger admitted they "screwed up" by not investing in Google sooner? Well, no duh. Missing the boat on one of the biggest tech companies of all time isn't exactly a badge of honor. Now they're trying to play catch-up, and everyone's acting like it's some stroke of genius.
And who even made the call on this Alphabet investment anyway? The articles hint that it wasn't even Buffett himself, but one of his lieutenants, Ted Weschler or Todd Combs. So, we're basically getting excited about their judgment, not the "Oracle of Omaha's." It's like getting hyped about the assistant coach instead of the star quarterback. Berkshire reveals new $4.3 billion Alphabet stake, sells more Apple
Speaking of tech stocks, it's all everyone talks about. NVDA this, META that. But honestly, who actually understands what these companies do anymore? It's all just buzzwords and hype cycles fueled by FOMO. I mean, look at PLTR. People treat it like it’s magic beans.
Apple Ain't What It Used to Be
And while everyone’s drooling over the GOOGL news, let's not forget that Berkshire also dumped more Apple stock. They've been shedding AAPL shares like it's going out of style, selling nearly three-quarters of their original holdings. But Apple is still their biggest holding? What does that even mean?
Maybe Buffett finally realized what I've been saying for years: Apple's lost its mojo. It's become a luxury brand for the masses, not an innovator. The iPhone is basically the same phone it was five years ago, just with a slightly better camera and a higher price tag.
Offcourse, the analysts are all still screaming "Strong Buy" on GOOGL, with an average price target suggesting a 12.98% upside. But those are the same analysts who were telling us to buy crypto last year, right before the whole thing imploded. So, excuse me if I take their predictions with a grain of salt—or maybe a whole shaker.
Then again, maybe I'm the crazy one here. Maybe Buffett really does see something in Alphabet that the rest of us are missing. Maybe Google's about to revolutionize the world with AI or autonomous vehicles or whatever other pie-in-the-sky project they're working on. But I doubt it.
