Berkshire Hathaway made headlines in late 2025 when it disclosed a significant investment in Alphabet Inc., the parent company of Google. Regulatory filings revealed Berkshire had acquired approximately 17.85 million shares valued initially at about $4.3 billion at the end of Q3. Since then, the value of this stake has risen to nearly $4.9 billion due to Alphabet’s rising share price. Notably, Alphabet’s stock surged more than 5% today when the market became aware of Berkshire’s sizable position, reflecting strong investor approval of the bet.
This investment stands out because Berkshire Hathaway, led historically by Warren Buffett, has been cautious with technology stocks. While Apple has been an exception, Buffett has often characterized his Apple investment as more of a consumer products play rather than a pure technology wager. The acquisition of Alphabet shares represents a distinct departure from Berkshire’s traditional investment approach, showing a willingness to engage more directly with Big Tech.
For decades, Buffett avoided tech stocks due to their complexity and rapid innovation cycles, preferring companies with predictable earnings and simple business models. He has openly admitted regret for not investing in Alphabet sooner, describing it as a missed opportunity. Berkshire’s new stake can be viewed as a correction of that oversight and a signal that the company is adapting its investment philosophy to better capture opportunities in sectors that are central to today’s economy.
Alphabet, unlike many tech firms, boasts a diversified business model beyond search advertising. YouTube, Google Cloud, and cutting-edge artificial intelligence ventures lend the company durable competitive advantages. Additionally, Alphabet remains relatively attractively valued, trading at around 25 times expected earnings, which aligns reasonably well with Berkshire’s value-oriented mindset compared to higher multiples seen in some peer tech companies.
The market responded positively to Berkshire’s move. Alphabet’s share price rose around 5% immediately following the news and traded near $293.50 per share, underlining the confidence investors place in Berkshire’s endorsement amid cautious sentiments about the tech sector’s future.
Strategically, this investment marks Berkshire Hathaway’s tenth-largest holding and shows a pivot during a time when Berkshire is also managing its portfolio by trimming other positions and maintaining substantial cash reserves. It may also indicate the influence of Berkshire’s future leadership, as Buffett prepares to step aside and CEO-designate Greg Abel advances the company towards more innovation-friendly sectors.
In essence, this investment reflects both a recognition of Alphabet’s robust fundamentals and an evolution in Berkshire Hathaway’s approach to the technology sector. The sizable purchase and ensuing stock boost are testament to the market’s view of Berkshire’s role not just as a passive investor but as a signal of quality and value in an uncertain market environment.
