TLDR
- Berkshire Hathaway disclosed a $4.9 billion stake in Alphabet, holding 17.85 million shares as of September 30
- Alphabet shares jumped 5.5% in premarket trading following the Friday filing disclosure
- The investment represents one of Warren Buffett’s final major moves before ending his 60-year CEO tenure at year-end 2025
- It remains unclear whether Buffett, portfolio managers Todd Combs and Ted Weschler, or successor Greg Abel made the purchase
- Buffett and Charlie Munger previously admitted they “screwed up” by not investing in Google sooner at the 2019 shareholder meeting
Alphabet shares surged 5.5% in premarket trading Monday after Berkshire Hathaway revealed a new investment in the tech company. The disclosure marks a shift for Warren Buffett’s conglomerate, which has historically avoided technology stocks.
A regulatory filing on Friday showed Berkshire owned 17.85 million Alphabet shares as of September 30. Based on the stock’s last closing price, the position is valued at $4.93 billion.
The timing of the investment is interesting. Buffett is set to step down as Berkshire’s CEO at the end of 2025 after six decades at the helm. Greg Abel will take over leadership of the conglomerate.
The filing doesn’t specify who made the purchase decision. Buffett typically handles larger investments himself. However, portfolio managers Todd Combs and Ted Weschler also manage portions of Berkshire’s equity portfolio.
A Long-Awaited Investment
This isn’t the first time Google has come up in Berkshire discussions. At the 2019 annual shareholder meeting, Buffett and his late business partner Charlie Munger expressed regret about missing the opportunity.
“We screwed up,” Munger said at the time. The comment highlighted their awareness of Google’s business strength and their frustration at not acting sooner.
Berkshire’s investment philosophy has traditionally favored businesses the firm understands deeply. For years, that meant staying away from technology companies.
Apple remains Berkshire’s largest stock holding. Buffett has defended that investment by describing Apple as a consumer products company rather than a pure technology play.
The Alphabet stake represents a departure from that cautious approach to tech. Google’s parent company operates the world’s dominant search engine and owns YouTube.
Market Context
The investment comes at a time when Big Tech faces questions about artificial intelligence spending. Michael Burry, the investor famous for predicting the 2008 financial crisis in “The Big Short,” recently deregistered his hedge fund. He had been critical of AI companies before that move.
Berkshire’s decision to buy Alphabet shares suggests confidence in the company’s business model despite these concerns. The stake adds another major technology holding to Berkshire’s portfolio alongside Apple.
The disclosure sent Alphabet shares higher before regular trading began Monday. Investors often view Berkshire’s stock picks as votes of confidence given Buffett’s track record.
Berkshire owned the shares as of September 30, according to the filing. The actual purchase could have occurred anytime during the third quarter of 2025.
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