In the third quarter of 2025, Berkshire Hathaway (BRKA 0.18%) (BRKB 0.45%) bought shares of Alphabet (GOOG 2.17%) (GOOGL 2.05%) for the first time. Some thought the position may have been initiated by Warren Buffett’s investing lieutenants, Todd Combs and Ted Weschler (the former has since left the conglomerate). That wasn’t a bad guess. After all, Buffett has historically avoided tech stocks and has entrusted Combs and Weschler with about 10% of Berkshire’s portfolio.
They were responsible for the company’s investment in Apple (AAPL +0.26%), which has been its biggest holding for years. Recent developments led others to point the finger at Greg Abel, the man who took the helm at Berkshire Hathaway after Buffett stepped down at the end of 2025, as the person responsible for initiating a position in Alphabet. After all, Berkshire has doubled down on this investment this year, pouring more funds into the tech leader in the first quarter before adding an additional $10 billion recently in a private placement.
Perhaps that was Abel’s way of stamping his fingerprints on Berkshire Hathaway’s portfolio, some thought. However, in a recent interview, Buffett said something about Berkshire’s decision to buy shares in Alphabet that investors should take note of. Read on to find out more.
Image source: The Motley Fool.
The true mastermind behind the move
In an interview with CNBC, Buffett let out three words that ended all the speculation. The Oracle of Omaha said about Berkshire’s initial decision to buy Alphabet stock in the third quarter of last year: “I initiated it.” That may come as a surprise, given Buffett’s track record and reputation for avoiding tech stocks. But the only regret he has, as he said in the same interview, is not getting in sooner.
Still, the fact that Berkshire Hathaway now owns Alphabet’s shares — and that Buffett himself engineered the stock purchase — should have the company’s shareholders excited. One of the fundamental hallmarks of Buffett’s philosophy is long-term investing. As he once said, his favorite holding period is “forever.” And Buffett apparently expects Alphabet to compound wealth over the long haul — that’s a bullish sign for the company from one of the greatest investors of all time.
Today’s Change
(-2.05%) $-7.26
Current Price
$347.20
Key Data Points
Market Cap
Day’s Range
$341.38 – $348.50
52wk Range
$186.15 – $408.61
Volume
934.5K
Avg Vol
31.8M
Gross Margin
60.43%
Dividend Yield
0.25%
Of course, Buffett isn’t infallible. He could be wrong. He has been before. But a quick look at Alphabet’s business suggests this isn’t one of those times. Alphabet leads several industries, including cloud computing and artificial intelligence, where there is still massive long-term potential. The company’s core advertising business remains strong, and it is also working on other opportunities, such as robotaxis, that could be highly lucrative in the future. Lastly, Alphabet boasts a wide moat from multiple sources, including network effects, high switching costs, and a strong brand name.
All of these factors paint a bright picture for the company’s future. So, my view is that investors should follow Buffett and Berkshire Hathaway’s lead and double down on the stock.
