Alphabet (NASDAQ: GOOGL) has gone from laggard to leader in the second half of the year, a shift that hasn’t gone unnoticed on Wall Street. After trailing the broader market and its Magnificent Seven peers earlier in the year, Alphabet has now flipped the script. Shares are up an impressive 41% this quarter alone, outpacing nearly every mega-cap tech stock.
And that relative strength just received a massive vote of confidence. Berkshire Hathaway (NYSE: BRK.B) revealed a 17.8 million share stake in Alphabet’s Class A stock during the third quarter, an investment worth nearly $5 billion at Monday’s close. The news surprised many investors for several reasons, and anytime Warren Buffett breaks character, it raises one big question: Should investors follow suit?
