The purchase represents a rare technology bet for Buffett, who has traditionally shied away from the sector despite expressing regret over missing earlier opportunities in Google. Buffett, often called “The Oracle of Omaha” for his long track record in investing, will step down as CEO of Berkshire Hathaway at the end of 2025, with Greg Abel set to succeed him. It remains unclear whether the decision to buy Alphabet shares was made by Buffett himself, his portfolio managers Todd Combs and Ted Weschler, or Abel, though Buffett has historically overseen the company’s largest stock moves.
The move comes amid heightened market scrutiny over tech giants’ soaring AI-related expenditures. Companies including Alphabet, Microsoft, and Nvidia are spending hundreds of billions of dollars on data centers and semiconductor technology, prompting some investors to question the sustainability of such aggressive capital outlays.
Alphabet trades at 25 times projected earnings over the next 12 months, making it relatively modestly priced compared with AI peers Nvidia (30x) and Microsoft (29x). Analysts say Berkshire’s investment could reflect a combination of caution and selective opportunism, targeting resilient companies without chasing the most hyped tech stocks.
Meanwhile, Berkshire has been rebalancing other holdings. It reduced its stake in Apple, which remains the company’s largest stock position at $64.9 billion, and trimmed its holdings in Bank of America as part of a broader drawdown that began last year. The conglomerate’s cash reserves have also climbed to record levels, fueling speculation that Buffett is wary of overvalued markets.
Alphabet’s stock has risen 46% year-to-date, significantly outperforming the S&P 500. Despite the addition of Alphabet, Berkshire’s portfolio continues to lean heavily toward financial services, which comprised 36.6% of its holdings as of September, according to Morningstar.
The investment underscores Berkshire’s measured approach in a shifting market: deploying capital selectively in companies it views as durable while maintaining substantial liquidity amid market uncertainty.