Alphabet Clears Rule of 40 as Abel's $31B Stake Grows

As of July 13, Alphabet continues to satisfy the Rule of 40 despite heavy AI spending, with revenue growth of 19% and operating margins at 55% in Q1 2026. Greg Abel rapidly built Berkshire's Alphabet position to $31.1 billion, starting with a Q3 2025 purchase of $5.18 billion, tripling holdings in Q1 2026, and adding $10 billion via a June private placement for 28.6 million shares. The stake now exceeds 9% of Berkshire's $342 billion portfolio and has overtaken Coca-Cola, underscoring Abel's shift toward AI-driven growth even as free-cash-flow margins fell to 28% amid $180-190 billion in projected capex.