Greg Abel's Strategic Shift at Berkshire Hathaway
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Portfolio Adjustment: New CEO Greg Abel reduced investments in long-held positions like Visa and Mastercard in Q1, indicating a shift away from smaller stakes, which may enhance the overall quality and return potential of the portfolio.
- Increased Cash Reserves: As of the end of March, Berkshire Hathaway's cash reserves reached a record $397 billion, reflecting the company's strategy to wait for more attractive investment opportunities in an overvalued stock market.
- New Investment Direction: Abel initiated new stakes in Delta Air Lines and Macy's during Q1, signaling a willingness to take on higher risks for potential returns despite the systemic challenges these companies face, which may alter the company's investment style.
- Long-Term Strategic Thinking: Abel's decisions suggest that Berkshire may gradually reduce reliance on volatile stocks and shift towards more controllable cash-generating businesses, potentially providing shareholders with more stable returns.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOGL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 388.830
Low
305.00
Averages
374.25
High
400.00
Current: 388.830
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TSMC Executive: AI Drives Energy Efficiency Priority
- Energy Efficiency Priority: TSMC Senior VP Kevin Zhang stated that surging electricity demands from AI are making energy efficiency the main constraint in future chip development, with customers across smartphones and AI data centers increasingly prioritizing performance gains without increasing power consumption.
- Industry Transformation: As the semiconductor industry undergoes a transformation, simply adding more transistors to chips is no longer sufficient to meet the performance demands of energy-hungry AI workloads, prompting TSMC to adjust its technology roadmap to address this challenge.
- Technological Advancements: Zhang revealed that TSMC expects its chips to reduce power consumption by up to 30% with the upcoming A14 generation by 2028 while achieving over 20% higher computing performance, indicating a rapid acceleration in energy efficiency innovations.
- Competitive Pressure: In this context, Huawei unveiled its 'Tau Scaling Law' plan this week to enhance performance by speeding up data movement within chips, reflecting the technological challenges faced by Chinese firms under export controls.
See More
Waymo Launches New Ojai Robotaxi Service
- New Model Launch: Waymo has introduced the Ojai robotaxi, designed to perform better in snowy conditions and manufactured at a lower cost than previous models, which is expected to significantly reduce operational costs and enhance market competitiveness.
- Service Expansion Plan: The service will be available to select public passengers in San Francisco, Los Angeles, and Phoenix, with plans to expand to San Diego, Las Vegas, and Denver this summer, further broadening its user base and market coverage.
- Technological Innovation: The Ojai model utilizes the sixth-generation Waymo Driver system, equipped with improved lidar and audio receivers that can better detect surroundings in adverse weather conditions, enhancing safety and user experience.
- Safety Issue Response: Waymo recently issued a voluntary recall of approximately 3,800 robotaxis to address software issues, demonstrating the company's commitment to safety; despite facing challenges, it remains focused on improving service quality and user trust.
See More
Waymo Unveils New Ojai Robotaxis to Expand Fleet
- New Model Launch: Waymo's newly introduced Ojai vehicles are roomier and feature removable steering wheels, significantly reducing manufacturing costs, aimed at enhancing market competitiveness and meeting diverse customer needs.
- Service Expansion Plan: Waymo plans to offer rides in Ojai robotaxis to select customers in San Francisco, Los Angeles, and Phoenix, with an expected expansion to San Diego, Las Vegas, and Denver this summer, further broadening its market coverage.
- Technological Innovation: The Ojai model utilizes the sixth-generation Waymo Driver system, which enhances low-light detection capabilities, and integrates new hardware and software to improve safety in adverse weather conditions.
- Safety Issue Management: Despite facing a voluntary recall of about 3,800 robotaxis to address software issues, Waymo remains committed to achieving its goal of 1 million autonomous rides per week by year-end, demonstrating its ambition in technology and market leadership.
See More
Alphabet: The Leader in AI Sector
- Market Advantage: With a market cap of $4.7 trillion and a gross margin of 60.43%, Alphabet stands out as the most complete AI company, leveraging its Gemini AI models and custom TPUs to secure a significant competitive edge in the AI landscape.
- Cost Efficiency: By utilizing its proprietary custom chips, Alphabet gains a substantial cost advantage in AI infrastructure spending, enabling it to train its Gemini model and run inference at a much lower cost compared to rivals reliant on Nvidia GPUs, thereby enhancing its economic efficiency.
- Distribution Channels: Owning the world's most widely used browser and smartphone operating system, Alphabet's Google Search engine serves as a primary gateway to the internet, while its global ad network provides robust support for monetizing AI efforts, driving revenue growth effectively.
- Long-term Investment Potential: Positioned as a leader in the consumer AI market with multiple advantages, Alphabet is viewed as a compelling AI stock to hold for the long term, particularly in retirement portfolios, showcasing strong growth potential.
See More
REalloys Secures Long-Term Supply Agreement for Heavy Rare Earths
- Strategic Supply Agreement: REalloys has signed a 15-year offtake agreement with Critical Metals Corp, securing 15% of monthly production from the Tanbreez project in Greenland, further solidifying its heavy rare earth supply chain in North America.
- Market Demand Response: This agreement enables REalloys to rapidly scale its production of heavy rare earth metals and alloys in the U.S. ahead of the Pentagon's 2027 ban on Chinese-origin materials, addressing the growing defense demand.
- Technology Integration Plan: REalloys aims to establish the largest heavy rare earth metallization facility in North America in Ohio, expected to achieve production from rare earth oxides to high-purity metals through recycling and upstream supply agreements, enhancing overall supply chain traceability.
- Defense Supply Chain Assurance: As the U.S. depletes significant portions of its precision weapons inventory in Middle Eastern conflicts, REalloys' heavy rare earth materials will become central to Pentagon supply chain planning, helping reduce reliance on Chinese rare earth materials.
See More
Workday and Google Cloud Expand AI Partnership for HR and Finance
- Partnership Expansion: Workday and Google Cloud are expanding their collaboration to integrate AI agents directly into everyday applications, significantly enhancing efficiency in HR and finance workflows across enterprises.
- Smart Agent Integration: The Sana Self-Service Agent is now the default AI model for Workday, allowing employees to ask questions through the Gemini Enterprise platform and receive personalized answers, ensuring that policies and permissions are correctly applied.
- Real-Time Workflow Optimization: The new collaboration supports Agent-to-Agent (A2A) and Agent-to-UI (A2UI) information sharing, enabling AI agents to autonomously hand off tasks in real time within a single workflow, thereby improving operational efficiency.
- Data Cloud Availability: Workday Data Cloud is currently available to early adopter customers and is expected to be generally available later this year, further driving digital transformation and intelligent management within enterprises.
See More
TSMC Executive: AI Drives Energy Efficiency Priority
- Energy Efficiency Priority: TSMC Senior VP Kevin Zhang stated that surging electricity demands from AI are making energy efficiency the main constraint in future chip development, with customers across smartphones and AI data centers increasingly prioritizing performance gains without increasing power consumption.
- Industry Transformation: As the semiconductor industry undergoes a transformation, simply adding more transistors to chips is no longer sufficient to meet the performance demands of energy-hungry AI workloads, prompting TSMC to adjust its technology roadmap to address this challenge.
- Technological Advancements: Zhang revealed that TSMC expects its chips to reduce power consumption by up to 30% with the upcoming A14 generation by 2028 while achieving over 20% higher computing performance, indicating a rapid acceleration in energy efficiency innovations.
- Competitive Pressure: In this context, Huawei unveiled its 'Tau Scaling Law' plan this week to enhance performance by speeding up data movement within chips, reflecting the technological challenges faced by Chinese firms under export controls.
See More
Waymo Launches New Ojai Robotaxi Service
- New Model Launch: Waymo has introduced the Ojai robotaxi, designed to perform better in snowy conditions and manufactured at a lower cost than previous models, which is expected to significantly reduce operational costs and enhance market competitiveness.
- Service Expansion Plan: The service will be available to select public passengers in San Francisco, Los Angeles, and Phoenix, with plans to expand to San Diego, Las Vegas, and Denver this summer, further broadening its user base and market coverage.
- Technological Innovation: The Ojai model utilizes the sixth-generation Waymo Driver system, equipped with improved lidar and audio receivers that can better detect surroundings in adverse weather conditions, enhancing safety and user experience.
- Safety Issue Response: Waymo recently issued a voluntary recall of approximately 3,800 robotaxis to address software issues, demonstrating the company's commitment to safety; despite facing challenges, it remains focused on improving service quality and user trust.
See More
Waymo Unveils New Ojai Robotaxis to Expand Fleet
- New Model Launch: Waymo's newly introduced Ojai vehicles are roomier and feature removable steering wheels, significantly reducing manufacturing costs, aimed at enhancing market competitiveness and meeting diverse customer needs.
- Service Expansion Plan: Waymo plans to offer rides in Ojai robotaxis to select customers in San Francisco, Los Angeles, and Phoenix, with an expected expansion to San Diego, Las Vegas, and Denver this summer, further broadening its market coverage.
- Technological Innovation: The Ojai model utilizes the sixth-generation Waymo Driver system, which enhances low-light detection capabilities, and integrates new hardware and software to improve safety in adverse weather conditions.
- Safety Issue Management: Despite facing a voluntary recall of about 3,800 robotaxis to address software issues, Waymo remains committed to achieving its goal of 1 million autonomous rides per week by year-end, demonstrating its ambition in technology and market leadership.
See More
Alphabet: The Leader in AI Sector
- Market Advantage: With a market cap of $4.7 trillion and a gross margin of 60.43%, Alphabet stands out as the most complete AI company, leveraging its Gemini AI models and custom TPUs to secure a significant competitive edge in the AI landscape.
- Cost Efficiency: By utilizing its proprietary custom chips, Alphabet gains a substantial cost advantage in AI infrastructure spending, enabling it to train its Gemini model and run inference at a much lower cost compared to rivals reliant on Nvidia GPUs, thereby enhancing its economic efficiency.
- Distribution Channels: Owning the world's most widely used browser and smartphone operating system, Alphabet's Google Search engine serves as a primary gateway to the internet, while its global ad network provides robust support for monetizing AI efforts, driving revenue growth effectively.
- Long-term Investment Potential: Positioned as a leader in the consumer AI market with multiple advantages, Alphabet is viewed as a compelling AI stock to hold for the long term, particularly in retirement portfolios, showcasing strong growth potential.
See More
REalloys Secures Long-Term Supply Agreement for Heavy Rare Earths
- Strategic Supply Agreement: REalloys has signed a 15-year offtake agreement with Critical Metals Corp, securing 15% of monthly production from the Tanbreez project in Greenland, further solidifying its heavy rare earth supply chain in North America.
- Market Demand Response: This agreement enables REalloys to rapidly scale its production of heavy rare earth metals and alloys in the U.S. ahead of the Pentagon's 2027 ban on Chinese-origin materials, addressing the growing defense demand.
- Technology Integration Plan: REalloys aims to establish the largest heavy rare earth metallization facility in North America in Ohio, expected to achieve production from rare earth oxides to high-purity metals through recycling and upstream supply agreements, enhancing overall supply chain traceability.
- Defense Supply Chain Assurance: As the U.S. depletes significant portions of its precision weapons inventory in Middle Eastern conflicts, REalloys' heavy rare earth materials will become central to Pentagon supply chain planning, helping reduce reliance on Chinese rare earth materials.
See More
Workday and Google Cloud Expand AI Partnership for HR and Finance
- Partnership Expansion: Workday and Google Cloud are expanding their collaboration to integrate AI agents directly into everyday applications, significantly enhancing efficiency in HR and finance workflows across enterprises.
- Smart Agent Integration: The Sana Self-Service Agent is now the default AI model for Workday, allowing employees to ask questions through the Gemini Enterprise platform and receive personalized answers, ensuring that policies and permissions are correctly applied.
- Real-Time Workflow Optimization: The new collaboration supports Agent-to-Agent (A2A) and Agent-to-UI (A2UI) information sharing, enabling AI agents to autonomously hand off tasks in real time within a single workflow, thereby improving operational efficiency.
- Data Cloud Availability: Workday Data Cloud is currently available to early adopter customers and is expected to be generally available later this year, further driving digital transformation and intelligent management within enterprises.
See More
