Shares of Alphabet, the parent company of Google, surged nearly 4% in premarket trading on Monday following the announcement that Berkshire Hathaway has acquired a significant stake in the tech giant. This move represents one of the most noteworthy technology investments made by Warren Buffett’s conglomerate in recent years. According to a quarterly filing, Berkshire holds approximately $4.3 billion worth of Alphabet stock as of September 30, making it the company’s 10th largest equity holding.
This unexpected investment surprised many observers who have closely followed Buffett’s historically cautious approach toward high-growth technology firms. While Apple remains Berkshire’s largest holding, Buffett has typically characterized it more as a consumer products company rather than a tech entity. The newfound stake in Alphabet appears to signal a shift in strategy and a willingness to embrace technology stocks more openly.
Industry analysts suggest that the decision to invest in Alphabet may have been driven by one of Buffett’s key lieutenants, Todd Combs or Ted Weschler, who are increasingly shaping Berkshire’s $300 billion stock portfolio. Despite their growing influence, analysts believe that such a significant investment likely received Buffett’s endorsement, especially as he prepares to step down as CEO at the end of this year. Combs and Weschler have already been responsible for initiating various tech investments, including a stake in Amazon, which has been held since 2019.
Alphabet’s stock has performed exceptionally well this year, rallying 46% as investors have responded positively to the company’s advancements in artificial intelligence and improvements in cloud profitability. Notably, Google Cloud, which was once a drag on margins, has turned into a significant revenue driver for the company.
Experts in the field are interpreting the Alphabet purchase as perhaps indicative of a broader strategy regarding technology investments, especially as Buffett prepares to hand over leadership to his longtime lieutenant, Greg Abel, in January. Bill Stone, chief investment officer of Glenview Trust Company, noted that the investment could symbolize an expansion of Berkshire’s technological expertise.
While Alphabet has experienced strong stock performance in 2025, its valuation still appears more favorable compared to other large-cap technology companies. Currently, Alphabet trades at 25.5 times projected earnings for the next year, while competitors like Microsoft, Broadcom, and Nvidia trade at much higher multiples.
Buffett has previously acknowledged missing out on investing in Google as one of his significant mistakes. He has stated that he was well aware of the company’s early advertising success through Geico, one of Google’s first major clients, which utilized Google’s advertising platform effectively. Buffett has remarked on realizing the impressive margins but confesses he lacked sufficient technological insight at the time to grasp the company’s potential fully.
