Billionaire investor Bill Ackman has acquired a significant stake in Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), drawing parallels to Warren Buffett‘s investment philosophy.
What Happened: Ackman’s investment approach aligns with Buffett’s iconic strategy of seizing opportunities when others are fearful and investing in companies with enduring competitive advantages.
Ackman revealed his rationale for betting on Alphabet at the CNBC Delivering Alpha Summit.
He capitalized on doubts about Alphabet’s artificial intelligence capabilities, using this skepticism as an opportunity to acquire shares at an attractive price.
Comparing Alphabet to Netflix Inc. (NASDAQ:NFLX), which he had invested in and exited within months last year, Ackman determined that the search and advertising giant was a more predictable wager for long-term commitment, reported Business Insider.