Key Metrics Behind Buffett and Ackman’s Favor for Alphabet, Amazon, Microsoft, and Meta

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Key Points

  • Warren Buffett and Bill Ackman have both invested in AI hyperscalers during the past year.

  • Buffett noted in July that he initiated Berkshire Hathaway’s position in Alphabet due to its potential for high returns on capital through future AI investments.

  • Analysts project that Alphabet could generate over $300 billion in free cash flow by 2031, with a return on invested capital exceeding 30% through the end of the decade.

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