TLDR
- Alphabet shares climbed 5.5% in premarket trading after Berkshire Hathaway revealed a $4.9 billion stake
- The filing showed Berkshire owned 17.85 million shares as of September 30, 2025
- This represents one of Warren Buffett’s final major investment moves before retiring as CEO in December 2025
- The purchase decision maker remains unclear – could be Buffett, portfolio managers, or successor Greg Abel
- Buffett and Charlie Munger previously admitted at the 2019 meeting they made a mistake not buying Google earlier
Alphabet stock rose 5.5% Monday morning after Berkshire Hathaway disclosed a substantial new investment. The move represents a departure from the firm’s traditional approach to technology companies.
Friday’s regulatory filing revealed Berkshire held 17.85 million Alphabet shares on September 30. At recent prices, the position is worth $4.93 billion.
The timing raises questions about Buffett’s involvement. He’s stepping down as Berkshire’s CEO in December 2025 after leading the company for six decades. His successor, Greg Abel, takes over next year.
Berkshire didn’t specify who authorized the stock purchase. Buffett typically manages the largest investments himself. However, Todd Combs and Ted Weschler also handle portions of the equity portfolio.
Fixing Past Mistakes
The Google investment has been on Berkshire’s radar for years. Buffett and Charlie Munger discussed their regret at the 2019 shareholder meeting.
“We screwed up,” Munger told attendees. The admission highlighted their recognition of Google’s business strength.
Berkshire traditionally avoided technology stocks. The firm preferred businesses with simple, predictable operations. Banks, insurance companies, and consumer brands dominated the portfolio.
Apple became the exception. It’s now Berkshire’s largest stock holding. Buffett defends the investment by describing Apple as a consumer products business rather than a technology company.
The Alphabet stake shows Berkshire’s willingness to expand its tech exposure. Google commands the search market and owns YouTube. Both generate substantial revenue and profit.
Market Response and Context
Investors reacted quickly to the news. Alphabet shares gained before regular trading opened Monday. Berkshire’s investment choices often influence market sentiment given its track record.
The purchase comes during a period of scrutiny for Big Tech. Questions about artificial intelligence spending have increased in recent months.
Michael Burry, famous for predicting the 2008 crisis, deregistered his hedge fund last week. He had criticized AI companies before making that decision.
Berkshire’s Alphabet investment suggests confidence in the company’s fundamentals. The position adds another major tech holding alongside Apple.
The September 30 date means Berkshire bought the shares sometime during the third quarter. The exact purchase timing and price remain unknown.
Buffett’s approaching retirement adds context to the investment. This could be one of his final major stock picks. Abel may have played a role in the decision as he prepares to take control.
Berkshire has $325 billion in total stock holdings. The Alphabet position represents about 1.5% of that portfolio. It’s a meaningful stake but not among the firm’s largest holdings.
The filing provided the market’s first look at Berkshire’s third quarter equity purchases. More details may emerge at the next shareholder meeting.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
