Wang Bi Prefers Berkshire Over Apple Amid AI Capex Debate

Wang Bi, dean of the Hong Kong Austrian Economic School, said he is not fond of the heavy capital spending by large technology companies, but remains optimistic about Google's full ecosystem from chips to consumers as markets question whether big AI infrastructure investment will generate enough returns, according to Ming Pao. He noted that Alphabet's quarterly results were strong, but concerns rose after cash flow turned negative. Wang said Google's share price may stay subdued in the near term because of excess spending, but he sees the company building a deep moat and plans to add to the stock gradually through sell puts around a $290 strike price, with an after-premium cost of about $270. On Apple, Wang said the stock has recently hit a record high and that its smaller capital needs make it more resilient and a favorite of Warren Buffett. Still, in a comparison between Apple and Berkshire Hathaway, Wang said he favors Berkshire for the long term because Apple keeps buying back shares at any price, while Berkshire only acts when shares trade below intrinsic value. He said he has sold U.S. Treasurys and rotated into Berkshire amid concerns over U.S. debt and inflation.