Abel's $10 billion Alphabet bet sits underwater at Berkshire

Abel's move marks a deliberate break from Warren Buffett's long-standing caution on technology stocks. The new CEO started cutting checks soon after taking the job, a pace that analysts describe as a conscious decision to raise Berkshire's exposure rather than a signal to markets. His timing, however, has drawn the obvious question from CFRA Research's Cathy Seifert: "is it a little late?" The share-price slide since June has left the Alphabet position below Berkshire's discounted entry price, and Bending Spoons' post-investment rally faded within weeks.

For longtime Berkshire observers, the comparison that matters is Apple Inc. Buffett's 2016 Apple investment was derided at the time as late in the iPhone maker's history, yet became one of Berkshire's most lucrative bets. Meyer Shields of Keefe Bruyette & Woods suggests Abel likely views the AI positions the same way, as a long-term wager that can be considered with Berkshire's customary conservatism.

The financial backdrop supports patience. Berkshire was still sitting on a $365.5 billion cash pile at the end of the second quarter, putting it among the best placed to support AI's massive investment needs. Whether Abel uses the market's concerns around AI and lower valuations to add more is the question investors will be able to answer only around mid-November.