Tom Russo Highlights Berkshire’s Strategic Alphabet Bet Amid Tech Caution
Tom Russo, partner at Gardner Russo & Quinn, endorsed Berkshire Hathaway's late-stage pivot into Alphabet as a prescient MOVE despite Warren Buffett's historic tech aversion. The firm itself holds $1.1 billion in Google's parent company alongside $1.8 billion in Berkshire shares, representing nearly a third of its $9.3 billion U.S. equity portfolio.
Berkshire's 17.8 million-share Alphabet purchase last quarter—valued at $4.3 billion as of September 30—likely preceded the stock's 40% summer surge. An early entry could mean paper gains exceeding $2 billion given subsequent rallies. Russo emphasized Alphabet's enduring value proposition: its shares still trade at a discount to market multiples despite the run-up, with the company's willingness to prioritize long-term R&D over quarterly optics resonating with patient capital.
