'Wall Street Titan' Buffett Pinpoints 43 Trillion Won Investment: "Brighter Future Than Any Other Company"

$31 Billion Investment in Alphabet, Google's Parent Company

"Google Is No Longer an Asset-Light Business"

Warren Buffett has revealed the background behind his astronomical investment in Alphabet, the parent company of Google. He admitted that not investing in Google in the past was a "mistake," and emphasized his positive outlook on the future of artificial intelligence (AI) competition.

On the 18th (local time), Buffett stated in an interview with the U.S. economic media outlet CNBC, "It was a mistake not to invest in Google just because it is an asset-light business," and added, "Alphabet is a company with a higher probability of success than 90 to 95% of companies traded on Wall Street."

Warren Buffett, Chairman of Berkshire Hathaway. Photo by AFP News Agency

Berkshire Hathaway, led by Buffett, currently holds Alphabet shares worth 31 billion dollars (about 43 trillion won). Of the total shares held, 21 billion dollars were purchased through market transactions, and just last month, the company made an additional investment of 10 billion dollars through a private placement of new shares. This decision was made to support Google's expansion of AI investments.

At the time, there was speculation on Wall Street and elsewhere that Berkshire's new large-scale investment was the first strategic decision made by CEO Greg Abel. However, Buffett emphasized to CNBC, "This time I'll say it. I started this."

Nonetheless, he added, "We do not do anything Greg does not agree with," and explained, "We discuss everything every day, and the final decision is made by Greg."

Regarding the assessment that Alphabet has now become Berkshire's largest investment destination, Buffett drew a clear line. He said, "It may look that way if you only consider listed stocks, but we also evaluate wholly owned businesses." He further explained, "The value of BNSF Railway is far greater than our stake in Alphabet." BNSF Railway is one of the largest freight railroad companies in the United States and is a 100% subsidiary of Berkshire.

Buffett stated, "The criteria are the same whether you're buying listed stocks or acquiring an entire company. It's about purchasing a good business at a reasonable price and finding excellent management."

Regarding the AI investment race among big tech firms, he commented, "Microsoft, Amazon, and Meta have no other choice. Right now, everyone has to play this game," and added, "If someone provides better results to customers, customers will ultimately move in that direction."

He also noted, "There has never been a history of railroad companies investing 200 to 300 billion dollars. AI is no longer an asset-light business."

Buffett emphasized, "The reason to invest in a company is because it can deliver much higher returns over a long period than government bonds," and added, "A good business generates high returns on capital for a long time, and that is my standard for a good company."

This content was produced with the assistance of AI translation services.