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Practical Advice from

Should Warren Buffett Buy Alphabet Stock?

Roman Boed via Flickr


Warren Buffett admitted over the weekend at the Berkshire Hathaway Inc. (BRK.A, BRK.B) annual meeting that he should have bought Alphabet Inc. (GOOG, GOOGL) stock. That’s because, early on, he and Charlie Munger knew that Berkshire’s insurance subsidiary, Geico, was paying $10-$11 per click to Google for advertising fees.

If Buffett had bought GOOGL stock back in 2011, instead of International Business Machines Corp. (IBM) stock, Berkshire Hathaway shareholders would have something else to celebrate, rather than commiserating in defeat.

Buffett recently sold 24 million shares of IBM (one-third of Berkshire’s position in IBM) in the first and second quarters at prices around $180. Berkshire Hathaway first acquired 57.3 million shares of IBM in the third quarter of 2011. At the end of September 2011, those shares of IBM stock were worth $10 billion, or $174.87 apiece.


As of May 5, 2017, those shares are each worth $155.05, a 19.8% loss over 80 months. Over those same 80 months, GOOGL stock is up 268.6%.

It’s no wonder Buffett laments not buying GOOGL stock.

Prices and data are from the original InvestorPlace story published on May 8, 2017. Click on ticker-symbol links in each slide for current prices and more.

SEE ALSO FROM KIPLINGER: Two Dividend-Paying Tech Stocks Owned by Warren Buffett

This slide show is from InvestorPlace, not the Kiplinger editorial staff.


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