저자: ProactiveThinker채널진행자 · 외국인
요약 보기
워런 버핏의 버크셔해서웨이가 알파벳(구글)에 약 120억 달러를 투자한 것을 근거로 구글을 최고의 AI주로 평가. 구글은 칩 설계·데이터센터·모델(Gemini)·유통 등 AI 공급망을 장악했고 사용자 점유율도 높아 AI 승자가 될 것이라 주장. 구글 잉여현금흐름 증가와 마진 개선으로 시가총액 10조 달러 돌파 가능성 제시. 과거 3월 추천 이후 약 37% 상승했다고 강조하며, 가격이 과열되면 매도 시점이 온다고 언급하고 유료 교육 가입을 유도.
다듬은 글
Warren Buffett is finally investing in AI and it doesn't seem like something that Warren Buffett would do because historically he stayed away from technology companies until technology companies literally dominated the entire world. And now we are in an era where AI is about to take over the world and it seemed like Warren Buffett is not the person who is going to invest in AI because he's been very skeptical of technology in the first place then he was skeptical of Bitcoin.
And now he's supposed to be skeptical of AI but that's not the case. Berkshire Hathaway is finally investing in AI and this is by far the greatest AI stock in the market. And if you have been part of the Investing Academy, I told you about this before Warren Buffett invested in this stock. And now from the recent SEC filings we know that Warren Buffett has invested over 12 billion dollars in this stock.
So in this video I will explain what that stock is, why did Warren Buffett invest in this stock and why this is by far the best AI stock in the markets right now. So if we look at the Q first of Berkshire Hathaway, we see a couple of major buyings by Berkshire Hathaway. First of all, it's Alphabet. This is Google.
This is the best AI stock in the market right now. But besides Google, he also has invested in New York Times and also Delta Airlines for a specific reasons. If you look at the New York Times, you would see that he invested a billion dollars in the company. Why would he do that in the age of AI where there is so much fake content on the internet?
People will start to appreciate the real content, the real journalism. Probably he saw that an opportunity. But besides that, the New York Times is a subscription based company which is something that Warren Buffett has been a huge fan. It also has a very rich audience. The people who subscribe to the New York Times are usually the rich people.
Now, another company here also invested massively was Delta Airlines. He threw $2.6 billion. This was probably one of the best moves because the Delta Airlines, just like any other airline in the country, has actually suffered dramatically when oil prices rose so sharply. But, what makes Delta Airlines much better than many other airlines is that it actually owns its refineries.
So, during the crisis when every single airline was suffering because the price of jet fuel substantially has risen, Delta on the other side knew that they have their own refineries. So, as long as they have access to some kind of oil, they can turn that oil into jet fuel, which is why it did not impact them.
And that's why he invested $2.6 billion. And it seems like it was a very great investment since the stock since then has actually increased massively. And there is also Buffett effect. When everyone else in the market realized that Warren Buffett has actually invested in Delta, they also purchased the stock, which is why the stock is doing so great.
But, of course, the best investment that he has made is $12 billion into Google. And if you look at the Google price since he started buying Google, which was literally in March and April and May of this year, the price has increased by over $100 or about 37%, which is by far one of the greatest investments in the market right now.
The average growth of the S&P 500 annually is about 10%. So, when one investment in a couple of months makes you more than 37%, you can see that it's a good investment, especially when you have thrown $12 billion. And that's very unusual because according to Warren Buffett's indicator at this point, the entire stock market is insanely overvalued.
And Warren Buffett has been sitting on $400 billion dollars of cash. And now he takes 12 billion dollars and invests in AI companies where according to his own indicators, these stocks were supposed to be insanely overvalued. But if you know how to analyze stocks, if you know how to find these opportunities, you could have easily came to the conclusion that this is the best stock in the market right now when it comes AI.
So, on March the 7th, if you have been part of the Investing Academy, I posted Google as one of the best AI stocks in the market. And when the stock dipped back in March and April, I made a live stream and analyzed the stock live to all the audience to show them that Google at this point is insanely undervalued.
I did not know what Warren Buffett is going to do, but I knew for a fact because it was a very easy investment in the market. And I told everybody to buy Google. And whoever bought Google made more than 37%. So, this is the analysis that I actually posted. Why did I buy the stock? What is the valuation of the stock?
And what is my final strategy with this stock? I posted this analysis on the 7th of March when the stock was $298. And now the price of the stock is $376. So, but besides Google, I've also posted that it's time to buy Oracle. And the analysis is still available on the Investing Academy when the price of Oracle was at around $155.
Since then, the price has increased to $225. And it also seems one of the best investments. But at the end of the day, here's the question. Why Google is such a great investment? What exactly has convinced Warren Buffett to throw so much money into Google? When Warren Buffett is not actually known to invest in such businesses.
The revenue of Google over the last 5 years has been consistently growing. In 2021, they've actually reported $257 billion. And since then, every single year the revenue has been consistently growing. And last year they reported $400 billion, which is let's be honest, is a lot of money. If you look at net income, the net income has also been consistently growing from 30 from $76 billion to as high as $132 billion.
So the net profit margin has been between 29% to 32% all these years. But what is also very important to pay attention here is that if you look at free cash flow, the free cash flow has been consistently rising except the last year. Now free cash flow is the real money that is left for investors after the business has actually covered its expenses.
This is the money that the business can actually use to buy back its stocks in the market. This is the money that the company can actually use then to in order to distribute as dividends to investors. So the more the free cash flow is, the more valuable the company is going to be. And the only reason that free cash flow was substantially lower over the last couple of years, especially last year, is because Google is massively investing in AI.
And here's the difference between Google and all other businesses that Warren Buffett is investing. When Google has this business model, when they have built their entire infrastructure, the cost of additional service or the additional client is absolutely nothing for them. What they do is that they actually offered the services for free so that they have your data and now they're selling to advertisers your data.
They're selling ads. And that means that every single time an extra person is going to use Google services it does not cost Google absolutely anything. So you have probably by far the best business model in the market where your cost doesn't actually rises, but the more you sell on the other side, the more money you're going to make while your cost is fixed.
And if you zoom out and you look at the number of people who use the internet, there're about 5.6 billion people. And the number of people who use Google is 5.1 billion people. So, essentially, 90% of the entire market is belongs to Google. There is absolutely no competition or whatsoever. At this point, we can say for a fact that Google has won the internet game.
They dominated the entire market. And Google will be the biggest winners of AI because now they can take these 5.1 billion users that they have and turn all of them into AI users. But here's the question. Why do you think Google is in such a good position? We have real competition from Elon Musk's companies.
We have a competition from Meta. We have competition from other businesses such as ChatGPT that is supposed to be leading. We also have Cloud, and Cloud has nothing to do, for example, with Google. Now, if you look at the entire AI industry, AI isn't just about the chatbot that you're using. AI isn't just about the number of users you have.
AI isn't just about the chips. There is an entire supply chain, and the more you control the supply chain, the more control you actually have over AI. If you have everything in the AI, for example, but you don't have the energy to power that, suddenly you're not the one who controls AI. If you have the chatbot, for example, but you don't have enough computer chips, suddenly your chatbot is useless because you can't actually offer that AI services.
So, there's basically an entire supply chain. Let's look at that supply chain, and let's look at how much Google actually controls that. First of all, it all designs or it all starts with designing the chips. What makes AI so difficult is that you need the most complicated chips in the market, and Google designs its own chips, and there aren't many companies that can do that.
Apple, for example, designs its chips for their computers and for their iPhones, but there aren't many other companies that do that. Google is one of the few. Now, secondly, once you have designed the chips, it's time to manufacture these chips. But, here's the problem that Google has. Google does not manufacture its chips, but rather they outsource their chips to other companies such as TSMC because there aren't many companies that can do that.
TSMC probably has a complete monopoly when it comes to building the most advanced chips in the market. So, we can perfectly understand that. Even Apple does not manufacture their own chips. Even many other large companies that probably build the best technologies in the world don't manufacture their chips because there's one company that dominated the market over the last four years.
However, when you have manufactured your chips, it's not enough. Now, you have to take these thousands of chips, maybe millions of chips, and then you have to turn them into data centers where you're going to train your AI. When you build these huge data centers, it's not just about huge buildings and warehouses.
It's about bringing your computer chips there, putting them in such a way to train your AI. And how many companies can do that? Not many. And Google is one of the few. So, imagine for a moment, the company designs its chips and builds its data centers so they can effectively run their AI without the middleman.
The only thing that they're outsourcing here is manufacturing the chips. Once you have trained your AI, that AI should be usable. And that AI is called Gemini when it comes to Google. To train Gemini and to build Gemini, you need advanced, complicated computer language models. And one of these models or the most advanced models are in the hands of Google.
So, Google essentially almost controls the entire supply chain when it comes to AI. And suddenly, when you have Gemini, what do you do? First of all, you will integrate Gemini into all Google products. And Google has a lot of products. And Google is even introducing new products. Now you have Nano banana.
Now you have Gmail where Gemini is being integrated. Now when you go to Google and you search for something, instead of searching for something, Gemini is going to summarize everything on the internet and just give you access. And now you no longer have to go to these websites to search for these answers.
So these websites are not making any money or so whatsoever, but Google is the company that is not going to share that ad for them because you're getting the answer directly from Google. And they will be integrating that across all of their products and introducing more products. So you will see in the next couple of years hundreds, if not thousands, of companies are going to go bankrupt one by one.
They can also start introducing that Gemini to other services. So when you have some kind of a service on the internet, you basically will take Gemini and you will build it specifically for that service and now Gemini will be backing the AI. But another important thing, they also tell us that Gemini will basically replace the jobs.
So companies, factories, hospitals, banks, all of them will be running on AI. And now what they will do, all these businesses, all these banks, all these factories, they don't have the power, they don't have the infrastructure to build their own AI. What do you think they will do? They will basically take the Gemini and Gemini will build specifically the Gemini for them because the Gemini is already built, they control the entire infra- structure.
So now when the world will be running on AI, when the banks will be running on AI, when law firms will be running on AI, when factories and hospitals will be running on AI, all of that will be running on Gemini. So suddenly when you zoom out, you can realize that Google is one of the few companies that will literally control the entire world because it's one of the few countries that controls almost the entire supply chain when it comes to AI.
If suddenly Google will start manufacturing their computer chips like TSMC, you will realize that Google is going to become so powerful that it's going to become even more powerful than the entire country. At that point, nobody will be able to stop Google. And Google will be able to build an AI Utopia.
Probably that's something that nobody wants to see, but Google is not going to ask anybody. Now, at the end of the day, when you are making an investment, the final question is dodge. How much money you're putting in and how much money you're making. When you're controlling AI, suddenly your revenues are going to rise substantially because you're going to put an end to a lot of businesses.
Now, secondly, you will sell a lot more services. You will be running the banks. You will be running the hospitals. And thirdly, you will bring down your cost. And that means that your profit margins will become much better. Your free cash flow will become much higher. And potentially, Google will be one of the first companies who are going to cross a 10 trillion-dollar valuation.
So, when you understand the entire dynamic of AI, when you understand Google's position in the world of AI, you realize that Google literally has the potential to double their current revenue. They have the potential to double their current net profit. They have the potential to double their current free cash flow.
And by the time other companies will build the exact same infrastructure, Google has already dominated the entire market. Even Microsoft can't compete with Google. Even Apple can't compete with Google. Now, after controlling the entire AI industry, Google can even come out with a smartphone that will put an end to iPhone, for example.
That's also something that Google could potentially do. Do you see how much power it gives Google? And that's why I started buying Google in February and March of this year. But at certain point, there's going to be so much demand for the Google that the price of Google is going to be so hyped that it will be time to sell that stock.
Because at that point, the price of Google is going to be insanely overvalued. And if you don't sell the Google price when it reaches the peak, you are going to lose a lot of money, especially if you buy the stock when it's going to reach that peak. And you want to be the first person to know when I will be selling Google stock, then join the Investing Academy.
And a limited number of people will be able to join the Investing Academy completely free today. So, the seats are very limited. The link is going to be in the description of this video. If you use it and join the Academy today, you will be able to join it completely for free. The seats are limited and will be closing down very soon.
So, use this opportunity and join the Academy. The link is in the description of this video.
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