Berkshire just made a rare tech bet, revealing a roughly 4.9 billion dollar stake in Alphabet, buying about 17.85 million shares and sending $GOOGL up around 5 percent to record highs.

What happened and why it matters

Berkshire Hathaway has quietly built Alphabet into one of its top holdings, even as it has been cutting its long held stake in Apple. For a traditionally tech cautious Buffett universe, that is a powerful signal that Alphabet’s mix of search, cloud, and artificial intelligence is attractive at today’s valuation.

Winners

Category 1 – Quality AI platforms

Names: $GOOGL, $MSFT

Reason: Berkshire’s move effectively blesses the idea of owning big diversified AI platforms that throw off huge cash flow instead of chasing the frothiest pure AI plays. Alphabet and Microsoft both sit a ...