Warren Buffett, the legendary investor often dubbed the “Oracle of Omaha,” has long been known for his reluctance to embrace high-growth technology stocks. Therefore, when the latest 13F report revealed that Berkshire Hathaway had acquired billions of dollars’ worth of Alphabet shares — Google’s parent company — the market responded instantly and positively. Alphabet’s stock surged by approximately 5 percent even before market open earlier this week.
This move is particularly striking because the purchase occurred after Google’s stock had already climbed nearly 50% since the start of 2025. Buffett’s hallmark investment strategy typically involves buying shares only when he believes their valuation is cheap. While Berkshire has previously invested in tech giants like Apple and Amazon, the decision to step into Alphabet still feels momentous, especially given Buffett’s renowned caution towards growth stocks.
-
Berkshire Now Holds 18 Million Alphabet Shares
According to the regular filing released last Friday, Berkshire Hathaway purchased approximately 18 million shares of Alphabet, valued at over $4.3 billion, during the third quarter of 2025. This significant acquisition now positions Alphabet as the 10th largest holding in Berkshire Hathaway’s diverse portfolio.
-
Likely Driven by Todd Combs and Ted Weschler
This substantial investment is widely attributed to one of Berkshire’s two portfolio managers, Todd Combs or Ted Weschler. Both managers are entrusted with mandates to make multi-billion dollar investments, particularly within the technology sector. It was also Combs and Weschler who previously championed Berkshire’s successful entries into Apple and Amazon, investments that have since yielded considerable profits.
Berkshire’s entry is also perceived as a crucial endorsement of Alphabet’s burgeoning AI strategy. Amidst investor concerns regarding the hefty costs of AI development at other tech firms like Meta, Buffett’s move sends a clear signal that Google possesses robust fundamentals and an appealing valuation.
For Buffett himself, this could be seen as a form of redemption; he once admitted regretting not buying Google shares from the outset. Furthermore, this decision offers a glimpse into Berkshire’s potential trajectory in a post-Buffett era — one seemingly more open to embracing technology and innovation.
Intriguingly, the significant purchase of Alphabet shares coincided with a reduction in another major technology holding. Berkshire pared down its Apple ownership by approximately 15 percent, although Apple still remains their largest position, valued at over $60 billion.
When Warren Buffett — arguably the world’s most cautious investor — decides to acquire Alphabet shares after they’ve already appreciated by nearly 50 percent, it conveys a powerful message: their valuation is still considered highly attractive. This strategic move could also serve as a vital guide for retail investors: Buffett doesn’t buy into hype; he buys value. And if he perceives such profound value in Google’s stock right now, it suggests the market might not yet be fully appreciating its true worth.
- How Warren Buffett Invests If He Had to Start from Scratch
- 4 Timeless Investment Principles of Warren Buffett That Prove Effective
- Reasons Why Berkshire Hathaway Stock Remains a Must-Buy
- Berkshire Hathaway Buys Alphabet Shares Worth $4.93 Billion
Summary
Warren Buffett’s Berkshire Hathaway recently acquired approximately 18 million shares of Alphabet, Google’s parent company, valued at over $4.3 billion, marking a significant entry into a high-growth technology stock. This move is particularly striking given Buffett’s typical caution with tech and his strategy of buying undervalued assets, as Alphabet’s stock had already climbed nearly 50% in 2025. The acquisition made Alphabet the 10th largest holding in Berkshire’s portfolio and caused its stock to surge by 5%.
This substantial investment is largely attributed to Berkshire’s portfolio managers, Todd Combs or Ted Weschler, known for championing previous successful tech entries like Apple and Amazon. The acquisition is widely perceived as a crucial endorsement of Alphabet’s robust fundamentals and burgeoning AI strategy, despite investor concerns about AI development costs elsewhere. Intriguingly, this purchase coincided with a 15% reduction in Berkshire’s Apple ownership, though Apple still remains their largest position.