Berkshire Hathaway has invested in Alphabet, causing the stock to rally and no longer be considered a value stock. Warren Buffett’s final investment moves as CEO are still being revealed, with Alphabet being a surprising addition to Berkshire’s portfolio. Investors may want to follow Berkshire’s lead and consider investing in Alphabet.

Buffett and his team purchased nearly 17 million shares of Alphabet stock during Q3, totaling about $6 billion. This investment signals that Alphabet is poised to succeed in the AI market, despite lagging behind competitors previously. The stock price has significantly increased since Berkshire’s purchase, making it a premium buy but still a strong contender in the tech sector.

Alphabet’s stock price has fluctuated significantly since Berkshire’s investment in Q3, particularly due to the resolution of a monopoly case. The stock now trades at about 30 times forward earnings, compared to 20 times during Q3. While it may seem overvalued, Alphabet is leading in various fields and showing strong growth potential, making it a worthwhile investment opportunity.

Investors should carefully consider buying stock in Alphabet, especially since it wasn’t included in the Motley Fool’s list of top 10 stocks to buy. However, past recommendations from the Stock Advisor team have yielded significant returns, outperforming the S&P 500 by a wide margin. While Alphabet may not offer immediate massive returns, it could still outperform the market in the long run.

Read more at Nasdaq: Warren Buffett Sent a Clear Multibillion-Dollar Message About Artificial Intelligence That Investors Shouldn’t Ignore