Alphabet’s shares reportedly rose 5.2% after Berkshire Hathaway revealed a $4.93 billion stake in the company. Berkshire’s surprising new tech stake is being viewed as one of the final major investments influenced by legendary investor Warren Buffett before he steps down as CEO at the end of 2025.
Notably, the rare technology bet by Berkshire also comes amid concerns of overspending in the artificial intelligence (AI) space, with behemoths like Google extending billions towards building data centres and buying chips to power them, according to a Reuters report.
Berkshire picks stake in tech major
that is ‘priced more modestly’
Warren Buffett’s Berkshire Hathaway holds 17.85 million shares in Alphabet, Google’s parent company, as of 30 September, Reuters reported, quoting a filing on 14 November. The report added that based on the last closing price, the total stock holding would be valued at $4.93 billion.
The investment will give Berkshire a position in a tech heavyweight that is “priced more modestly”, compared to its AI peers. For example, Alphabet trades at 25.01 times expected earnings over the next 12 months, versus 30.02 for Nvidia and 29.37 for Microsoft, the report said, citing data compiled by LSEG.
So far this year, Alphabet has gained 46%, outperforming the benchmark S&P 500 index.
Notably, both Warren Buffett and late Charlie Munger had, at a Berkshire Hathaway annual shareholder meeting in 2019, expressed regret over not investing in Google sooner, the report pointed out, adding that Munger lamented, “We screwed up.”
Was this one of Warren Buffett’s last bets?
Notably, this comes at a time when the markets are experiencing a pullback due to concerns over potential overspending in AI. It also assumes significance as Warren Buffett is set to step down from the company after 60 years as CEO and hand over the reins to successor Greg Abel by the end of 2025.
The report added that it is not yet confirmed whether the Alphabet bet came directly from Warren Buffett or his portfolio managers, Ted Weschler and Ted Combs, or from Greg Abel. However, given precedence, the ‘Oracle of Omaha’ has traditionally made decisions on big Berkshire bets himself.
Berkshire’s bets: Balancing caution with opportunity?
The report further noted that while Warren Buffett considers iPhone maker Apple a consumer products stock, rather than strictly a tech bet, it remains Berkshire’s largest stock holding at $64.9 billion, despite recent cuts.
Since 2024, the company has also trimmed its stake in Bank of America (BoA).
Investors are concerned over the US economy bellwether Berkshire sitting on record cash reserves instead of investing, as they view it as a signal that Warren Buffett sees valuations as too high. The Alphabet investment suggests the company could be balancing caution with opportunism, deploying capital selectively in companies it views as resilient.
Overall, Berkshire’s equity portfolio remains heavily tilted towards financial services, which accounted for 36.6% of the holdings as of September 2025, according to Morningstar.
(With inputs from Reuters)
Key Takeaways
- Berkshire Hathaway holds 17.85 million shares in Google parent Alphabet, worth $4.93 billion.
- So far this year, Alphabet has gained 46%, outperforming the benchmark S&P 500 index.
- Warren Buffett considers iPhone maker Apple a consumer products stock, rather than strictly a tech bet, it remains Berkshire’s largest stock holding at $64.9 billion, despite recent cuts
About The Author
