I’m speaking about the 2019 changes to Generally Accepted Accounting Principles (GAAP) that required public companies to account for unrealized gains and losses of their equity investments in their quarterly earnings. For the first nine months of 2023, its other income was $709 million, up from a $2.50 billion loss a year earlier.Īs Warren Buffett would tell you, some of the numbers Berkshire Hathaway (NYSE: BRK.B) reports are virtually meaningless to the holding company’s overall economic picture. Alphabet’s OI&E Says a LotĪ quick perusal of Alphabet’s Q3 2023 10-Q suggests the company would be better off investing some of its free cash in an S&P 500 ETF as Warren Buffett recommends for most investors. On page 24 of its 10-Q there are details the company’s Other Income & Expenses. It hasn’t done nearly as well on its 2021 repurchases with an ROI of 8.4%. In 2022, the company repurchased 530 million shares of its stock, paying $59.30 billion, or $111.88 a share, an ROI of 20%. Through the first nine months of 2023, it repurchased $46.16 billion of its stock at an average price of $112.58. Fortunately, for shareholders, Alphabet continues to buy back its stock. GOOG stock is up 49%, this year but trails the rest of the Magnificent Seven.
Reading Alphabet’s (NASDAQ: GOOG), financial reports can be laborious, but it’s critical for owning Alphabet stock for the long haul.
