In a move that's capturing global market attention, Warren Buffett's Berkshire Hathaway has taken a massive $4.93 billion position in Alphabet Inc., Google's parent company, signaling a rare technology bet from the legendary investor. The investment comes at a crucial time when concerns about artificial intelligence overspending are growing across the tech sector.
Berkshire's Significant Alphabet Stake
According to recent regulatory filings, Berkshire Hathaway now holds 17.85 million shares in Alphabet as of September 30. At the latest closing price, this substantial position values approximately $4.93 billion, making it one of Berkshire's notable investments in the technology space.
The timing of this investment is particularly interesting given that Alphabet shares have already gained 46 percent this year, significantly outperforming the benchmark S&P 500 index. This performance demonstrates the company's strong market position despite increasing competition in the artificial intelligence arena.
Why Alphabet Appeals to Buffett's Strategy
Market analysts note that Berkshire's investment positions the company in a tech heavyweight that appears "priced more modestly" compared to its AI-focused peers. According to data compiled by LSEG, Alphabet currently trades at 25.01 times expected earnings over the next 12 months, which compares favorably to Nvidia's 30.02 and Microsoft's 29.37 multiples.
This isn't the first time Buffett and his team have expressed interest in Alphabet. Both Warren Buffett and the late Charlie Munger had previously expressed regret during a 2019 Berkshire Hathaway annual shareholder meeting about not investing in Google sooner. Munger famously lamented their missed opportunity, stating "We screwed up."
Strategic Implications and Market Context
The Alphabet investment arrives during a period of market pullback driven by concerns about potential overspending in artificial intelligence. Tech giants like Google are investing billions in building data centers and purchasing chips to power their AI ambitions, creating uncertainty among some investors.
This move also comes against the backdrop of Warren Buffett's planned transition from his role as CEO after nearly 60 years at the helm. The legendary investor is scheduled to hand over reins to successor Greg Abel by the end of 2025, making this potentially one of his final major investment decisions.
While it remains unclear whether the Alphabet bet came directly from Buffett himself or from his portfolio managers Ted Weschler and Ted Combs, historical precedent suggests the "Oracle of Omaha" typically makes decisions on significant Berkshire investments personally.
Balancing Berkshire's Investment Portfolio
Berkshire Hathaway's investment strategy appears to be evolving, balancing caution with selective opportunities. Despite recent trims in positions like Bank of America, the company maintains its massive $64.9 billion stake in Apple, which Buffett considers a consumer products stock rather than strictly a technology bet.
Investors have expressed concerns about Berkshire sitting on record cash reserves instead of deploying capital, interpreting this as a signal that Buffett views current market valuations as too high. The Alphabet investment suggests the company might be selectively deploying capital in companies it views as resilient amid economic uncertainties.
According to Morningstar data, Berkshire's equity portfolio remains heavily weighted toward financial services, which accounted for 36.6 percent of holdings as of September 2025. The Alphabet investment represents a meaningful diversification into the technology sector while maintaining the company's characteristic disciplined approach to valuation.
