Berkshire Hathaway Surprises with $4.3B Alphabet Investment

In a move that caught Wall Street off guard, Warren Buffett’s Berkshire Hathaway revealed a $4.3 billion stake in Alphabet, making the Google parent the conglomerate’s 10th largest equity holding by the end of September. The decision marks a notable departure from Buffett’s traditionally cautious approach toward high-growth tech companies.

While Berkshire has long held Apple as a core investment, Buffett has consistently framed it as a consumer products company rather than a tech giant. Analysts suggest that the Alphabet purchase, likely executed by Berkshire investment managers Todd Combs or Ted Weschler, signals growing confidence in technology, especially given their prior investments in Amazon and other tech names.

Alphabet has been one of the stock market’s biggest winners this year, with shares surging 46%, fueled largely by strong demand for artificial intelligence and robust growth in its cloud services. Buffett himself admitted in past interviews that he regretted not investing in Google earlier, despite seeing its advertising model firsthand through Berkshire’s auto insurance unit, Geico.

At the same time, Berkshire continued trimming its massive Apple stake, reducing the holding by 15% in the quarter to $60.7 billion. This follows a broader selling spree in 2024, where Buffett surprisingly cut two-thirds of the shares in one of the firm’s hallmark long-term investments. Bank of America shares also saw a 6% reduction, bringing the total to just under $30 billion, while stakes in Verisign and DaVita were modestly trimmed.

For 12 consecutive quarters, Berkshire has been a net seller of stocks, reflecting Buffett’s caution amid elevated market valuations driven by tech growth. The company is also approaching a historic leadership transition, with Buffett stepping down as CEO at year-end and Greg Abel set to take over, leaving investors keen to see whether the firm’s investment strategy will evolve under new leadership.