Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia. Continue \u00bb<\/a> <\/p>\n Warren Buffett retired as Berkshire Hathaway’s CEO on Dec. 31. Image source: The Motley Fool. <\/p>\n Warren Buffett’s understudy has piled into Alphabet (and with good reason) <\/p>\n Although Buffett initiated the first purchase of Alphabet stock last year, it’s Abel who more than tripled Berkshire’s stake in the company during the first quarter and added another $17 billion in the second quarter. Alphabet has leapfrogged longtime holdings Coca-Cola (NYSE:KO) and Bank of America (NYSE:BAC) to become Berkshire’s third-largest position. <\/p>\n While Google’s virtual monopoly in internet search serves as Alphabet’s foundation, the company’s cash flow growth is prominently tied to its cloud infrastructure services platform, Google Cloud. <\/p>\n Before AI became the hottest thing since sliced bread, Google Cloud was delivering sustained sales growth in the low-20% to low-30% range. Since Alphabet integrated generative AI and large language model solutions into Google Cloud, sales growth for this considerably higher-margin segment has gone parabolic. Revenue skyrocketed 82% in the June-ended quarter from the previous year, with Google Cloud generating over $99 billion in annual run rate sales. <\/p>\n In a recent interview with CNBC’s Becky Quick, Abel was asked why he liked Alphabet. Though neither Buffett nor Abel ever delves into the specifics of why they like individual investments, Abel did have this to say: <\/p>\n We have a lot of visibility from within our companies as to how we’re using AI, what type of benefits it’s delivering. So that brought incremental interest. And then we saw Google as a significant player. Now, there’s a lot more to Google than what I just said and why we like it. But those were the fundamental reasons as to why… we now have a significant investment in it. <\/p>\n Story Continues <\/p>\n Image source: Getty Images. <\/p>\n The apple doesn’t fall far from the tree <\/p>\n Although Berkshire’s new boss has shown that tech is on the menu, which isn’t something investors often witnessed with Warren Buffett at the helm, there’s still plenty of Buffett’s influence guiding Abel. <\/p>\n In particular, Abel extensively discussed Berkshire Hathaway’s opportunity as an energy provider for data centers. To be fair, he spent considerable time recognizing the backlash against data centers and noting that providing the necessary infrastructure and services only made sense if it didn’t increase costs for its customers. <\/p>\n Nevertheless, data centers are the best thing that’s happened to energy providers in a long time. Goldman Sachs (NYSE:GS) expects electricity prices to rise throughout the remainder of the decade, with data centers accounting for an estimated 40% of electricity demand growth. <\/p>\n Let’s be clear: Growth at Berkshire Hathaway Energy isn’t going to knock anyone’s socks off. But Buffett and Abel favor predictability. The proliferation of data centers should lead to steady growth in electricity demand and Berkshire Hathaway Energy’s operating cash flow. <\/p>\n Should you buy stock in Alphabet right now? <\/p>\n Before you buy stock in Alphabet, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $412,074!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,314,319!* <\/p>\n Now, it’s worth noting Stock Advisor’s total average return is 932% \u2014 a market-crushing outperformance compared to 209% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of September 18, 2026. <\/p>\n Bank of America is an advertising partner of Motley Fool Money. Sean Williams<\/a> has positions in Alphabet and Bank of America. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, and Goldman Sachs Group. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> <\/p>\n
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