Berkshire Hathaway Makes Historic $4.3 Billion Bet on Google
In a landmark move, Warren Buffett’s Berkshire Hathaway has taken a $4.3 billion stake in Google-parent Alphabet, marking the conglomerate’s first-ever investment in the tech giant since its founding in 1998. The purchase lifted Alphabet’s shares nearly 7% in after-hours trading and establishes it as Berkshire’s tenth-largest U.S. stock holding.
Key Takeaways
- Berkshire Hathaway invests $4.3 billion in Alphabet, its first Google stake ever.
- Alphabet becomes Berkshire’s tenth-largest U.S. holding.
- Berkshire simultaneously reduced its Apple position by 15% ($10.6 billion).
- The move signals a strategic shift as new investment managers gain influence.
Surprise Move Amid Apple Reduction
The investment surprised market observers, particularly as Buffett has historically characterized Apple as a consumer products company rather than a technology bet. Adding to the surprise, Berkshire’s recent 13F filing revealed it simultaneously slashed its Apple holding by almost 15%, or $10.6 billion, though Apple remains its largest investment.
New Leadership Driving Tech Strategy
Analysts suggest Berkshire’s Alphabet purchase reflects evolving investment approaches as new leaders assume greater responsibility. According to Reuters, the stake was likely selected by investment managers Todd Combs or Ted Weschler, who increasingly shape Berkshire’s $300 billion portfolio. Both have previously guided Berkshire toward technology investments, including its Amazon stake in 2019.
Bill Stone, CIO at Glenview Trust Company, told CNBC the Alphabet purchase may indicate Berkshire is “broadening its comfort zone in technology as leadership moves to the next generation.”
Alphabet’s Financial Appeal
Alphabet’s strong financial profile appears to be a major factor. CFRA analyst Angelo Zino noted: “We think Berkshire likely finds more comfort investing in GOOG over other tech plays given the high free cash flow potential of its core business coupled with an attractive valuation at about 22x 2027 EPS amid a healthy top-line growth trajectory.”
Buffett’s Leadership Transition Signals
As Berkshire ventures into new technology holdings, Warren Buffett is preparing shareholders for a leadership transition—though not a complete departure. His recent Thanksgiving letter stated: “I’m ‘going quiet.'” but immediately clarified: “Sort of.”
Starting in 2026, Greg Abel will write Berkshire’s annual shareholder letter and lead the annual meeting, with Buffett participating from the arena floor. However, Buffett confirmed he will “continue talking to you and my children about Berkshire via my annual Thanksgiving message.”
The extensive 7-page letter—double the length of last year’s—covered familiar Buffett themes including aging, luck, Omaha relationships, and expressed clear confidence in Abel’s leadership capabilities.
