Bill Ackman Sells While Warren Buffett’s Successor Greg Abel Buys: Who’s Making the Smarter Move?

Key Points

• Bill Ackman has completely liquidated his position in Alphabet, which Pershing Square held since 2023.

• Meanwhile, Alphabet has now become Berkshire Hathaway’s fifth-largest equity position, valued significantly by Greg Abel.

• Alphabet’s Google Cloud revenue grew 63% in the last quarter, with search revenue increasing by 19%.

In April 2023, Bill Ackman sold all shares of Alphabet held by his Pershing Square Holdings fund, while Greg Abel increased Berkshire Hathaway’s stake in Alphabet, marking it as a significant part of their $330 billion equity portfolio. Alphabet has seen extraordinary growth, particularly in its Google Cloud segment, which generated a 63% increase in revenue year-over-year, contributing to a tripling of operating income.

Despite the strong performance, Alphabet is expected to incur capital expenditures of up to $190 billion in 2023, $5 billion more than previously anticipated. This figure has raised some concerns among investors; however, the company’s search revenue continues to rise, driven by improving AI capabilities. In contrast, Ackman has shifted his focus to Microsoft, indicating he perceives better current value in its stock.