Prediction: Greg Abel Will Buy a Stock That Warren Buffett Spent Decades Passing on for This Simple Reason

If I had to stake connected 1 Buffett‑worthy banal that Warren Buffett himself ne'er pulled the trigger connected but Greg Abel could yet bless, my wealth would beryllium connected Microsoft (NASDAQ: MSFT).

Buffett has said for years that helium admires the concern but stayed distant for reasons that had small to bash with fundamentals. That's precisely what makes it specified an absorbing campaigner successful the Abel era.

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Buffett has been uncharacteristically blunt astir wherefore Berkshire Hathaway (NYSE: BRKB) (NYSE: BRKA) never owned Microsoft. He's called his nonaccomplishment to bargain successful aboriginal "stupidity," but erstwhile his relationship with Bill Gates deepened and Gates joined Berkshire's board, helium decided buying Microsoft would ever look similar a struggle of interest, adjacent if thing improper occurred.

In his words, "It conscionable would beryllium a mistake for Berkshire to bargain Microsoft" due to the fact that if the banal popped connected net oregon an acquisition close aft a purchase, critics would presume Gates had leaked information. So Microsoft became 1 of a tiny fistful of companies explicitly "off the list," not due to the fact that it failed Berkshire's concern criteria, but due to the fact that of optics and ethics.

Abel is simply a antithetic person

Those constraints look antithetic nether Greg Abel. Gates is nary longer connected Berkshire's board, the Buffett and Bill epoch has intelligibly passed, and Abel has already pushed the portfolio toward much exertion and AI‑linked names, including a ample enlargement of Berkshire's Alphabet position. The ethical rationale for avoiding Microsoft is weaker than it was a decennary ago, yet the concern is adjacent much intelligibly a acceptable for the Berkshire mold.

Microsoft looks Buffett-investor-friendly

On the numbers, Microsoft looks similar the benignant of fantastic institution trading astatine a just terms Buffett has ever said helium prefers. In fiscal 2026, Microsoft's gross grew 18% to much than $331 billion, with operating income up 21% and nett income up 31%.

The company's unreality and AI motor is extraordinary: In Q4 alone, gross deed $90 billion, Microsoft Cloud gross reached $59.3 cardinal (up 27%), and the AI concern crossed a $37 cardinal yearly tally rate, increasing 123% twelvemonth implicit year. Those are wide‑moat economics -- recurring subscription revenue, mission‑critical software, and a ascendant unreality level that enterprises are gathering connected for the adjacent decade.