Berkshire succession & Abel-era capital-allocation tests
Key Questions
What capital allocation moves has Abel made at Berkshire recently?
Abel has tripled Alphabet holdings to $10.5B at roughly 30x earnings despite falling free cash flow, signaling a bet on moat and AI spending. This contrasts with sales by Ackman and Druckenmiller and aligns with Abel's first solo filing emphasizing concentration and cash discipline.
How is Berkshire performing relative to the S&P 500?
Berkshire trails the S&P by a record margin amid regulatory tension from BNSF merger opposition. The gap underscores ongoing succession tests and patience themes echoed in Buffett's 1999 dotcom quote.
What new partnership is Berkshire forming in Australia?
Tokio Marine is teaming with Berkshire on M&A deals in Australia. The collaboration expands Berkshire's insurance and deal-making reach in the region.
Abel triples Alphabet ($10.5B) at ~30x earnings while FCF plummets – a bold bet on moat and AI capex, contrasting with Ackman/Druckenmiller selling. Berkshire trails S&P by record margin, with BNSF merger opposition adding regulatory tension. Abel's first solo filing confirms concentration and cash discipline; 1999 dotcom quote reinforces patience theme. Today's reads added: Morningstar calls Berkshire 4-star value at 7% discount; Buffett 1983 letter reinforces timeless principles; a new article questions Berkshire's raison d'être as crisis capital deployer; Cigar Butt Pivot (See's Candies) reinforces quality shift; Buffett vs VCs philosophy clash and historical anecdote add context. Latest additions: BRK.B vs MKL comparison, Buffett Musk Debate, Tokio Marine partnership, Abel's first letter, Ackman preview. Status: climaxing.