Larry Page's net worth surpassed $300 billion on Wednesday, driven by a rise in Alphabet shares. The stock increased by 3.9% to approximately $373, following comments from Warren Buffett about Berkshire Hathaway's investment in the company.
Key Details
Buffett, in a CNBC interview on Tuesday, stated that he initiated Berkshire Hathaway's investment in Alphabet last year and acknowledged he had made a mistake by not investing sooner. Buffett's remarks came as Alphabet's stock price surged, adding $8 billion to Page's fortune, which is now valued at $301.7 billion. Fellow co-founder Sergey Brin also benefited, with his net worth rising by $7.3 billion to an estimated $278.2 billion.
Background
Berkshire Hathaway disclosed the purchase of over 17.8 million Alphabet shares in November, valued at $4.3 billion at that time. The investment firm later expanded its stake, acquiring an additional 36.4 million Class A shares and 3.6 million Class C shares. This brought Berkshire's total holdings to about 58 million shares, now worth around $21 billion. Additionally, Alphabet announced last month that Berkshire agreed to purchase $10 billion in newly issued stock to support its AI infrastructure expansion. Buffett remains optimistic about Apple, stating it is still one of his favorite stocks.
The increase in Alphabet's stock price is likely to influence technology sector indices, particularly those heavily weighted in large-cap tech stocks. Investors may react to the implications of Berkshire's substantial investment in Alphabet, which could signal confidence in the company's future growth prospects.
Watch for further developments in Alphabet's AI initiatives and any additional comments from Buffett regarding his investment strategy in the coming weeks.