Buffett's Berkshire Bets Big on Google with $4.3B Stake

• Warren Buffett's Berkshire Hathaway has revealed a new $4.3 billion stake in Google's parent company, Alphabet.
• The investment marks a significant tech-forward move for the traditionally cautious investor, making Alphabet the firm's 10th largest holding.
• This new position was disclosed as Berkshire continued to trim its massive stake in Apple, signaling a potential portfolio shift.
• The move comes as Alphabet shares have soared 46% this year, largely driven by high demand for its AI and cloud services.

Buffett's Berkshire Hathaway Makes a Surprising Bet on Big Tech

In a move that has caught the attention of Wall Street, Warren Buffett’s Berkshire Hathaway has disclosed a significant new position in the internet and AI behemoth, Alphabet. According to a recent filing, the conglomerate invested $4.3 billion in the Google parent company, making it Berkshire's 10th largest equity holding as of the end of the third quarter.

This investment is particularly noteworthy given Buffett’s long-standing value investing philosophy, which has historically steered him away from high-growth technology stocks. While Berkshire famously holds a massive stake in Apple, Buffett has often characterized it as a consumer products company rather than a pure tech play. The new stake in Alphabet suggests a growing acknowledgment of the tech sector's enduring power within the legendary investor's firm.

The Brains Behind the Buy

While the move is under Buffett's name, speculation is rife that the Alphabet purchase was likely initiated by one of his investment managers, Ted Weschler or Todd Combs. This duo has a track record of pushing Berkshire into the tech space, with one of them initiating an investment in Amazon back in 2019. Berkshire still maintains a $2.2 billion holding in the e-commerce giant.

Alphabet has proven to be a standout performer in the market, with its shares rallying an impressive 46% this year. This momentum has been largely fueled by the surging demand for artificial intelligence, which has significantly boosted Alphabet’s cloud business.

A Broader Portfolio Reshuffle

The pivot towards Google coincides with Berkshire paring back some of its other major holdings. The firm continued to trim its colossal Apple stake, reducing it by another 15% in the quarter to a value of $60.7 billion. Despite the consistent selling throughout 2024 and 2025, the iPhone maker remains Berkshire’s largest single equity investment.

Furthermore, the conglomerate also reduced its holdings in:

• Bank of America: Stake cut by 6% to just under $30 billion.
• Verisign and DaVita: Holdings were also reduced during the third quarter.

These sales contribute to a larger trend for the firm, which has now been a net seller of stocks for 12 consecutive quarters amidst a tech-driven bull market.

An Evolving Strategy for a New Era

These strategic shifts are being closely watched by investors as they may offer clues into the future of Berkshire Hathaway. With the 95-year-old Buffett set to step down as CEO at the end of the year, his longtime lieutenant Greg Abel is poised to take the helm. The recent high-profile tech investments could signal an evolution in the conglomerate's investment approach as it prepares for a new era of leadership.