Key facts
- Berkshire Hathaway holds approximately 106 million Alphabet shares, valued at nearly $38 billion as of June 30.
- Warren Buffett initiated the Alphabet investment in the third quarter of 2025.
- Alphabet is now Berkshire's third-largest stock holding.
- Berkshire Hathaway was a net buyer of stocks in the last quarter after 14 consecutive quarters of net sales.
- Berkshire repurchased $4.5 billion of its stock, its largest buyback since 2021.
Warren Buffett, the legendary investor and former CEO of Berkshire Hathaway, appears to be behind the company's substantial investment in Alphabet, acquiring approximately 106 million shares worth nearly $38 billion by the end of June. This move, initiated within the third quarter of 2025 according to Buffett's own statements, marks Berkshire's third-largest stock holding, trailing only Apple and American Express.
Buffett, who stepped down as CEO at the turn of the year, is likely still actively involved in managing Berkshire's stock portfolio, potentially with investment manager Ted Weschler. Finance professor David Kass noted that Buffett continues to come into the office daily, with investments remaining his primary focus.
The appeal of Alphabet, with its $4.2 trillion market capitalization, is significant. The company's stock has surged nearly 70% in the past year and more than tripled since May 2023, driven by expectations that it will be a major beneficiary of the AI boom. Buffett himself commented that Alphabet was more likely to be a winner than most companies on Wall Street, citing the substantial investments in AI infrastructure by Alphabet and its peers.
Historically, Buffett has expressed caution regarding tech companies due to their complex valuations, rapid innovation, and intense competition, often placing them outside his "circle of competence." However, Kass suggests that Buffett likely views Alphabet's dominant positions in search, advertising, cloud computing, and YouTube as providing a durable competitive advantage. Michael Burry, another prominent investor, previously labeled Alphabet as a "value investor's favorite."
The significant Alphabet stake was part of a broader shift in Berkshire's investment strategy last quarter. After being a net seller of stocks for 14 consecutive quarters, Berkshire purchased a net $23.5 billion in stocks, largely driven by the Alphabet acquisition, which included a $10 billion private placement at a discount. Concurrently, Berkshire repurchased $4.5 billion of its own stock, the largest amount since 2021, and completed an $8.5 billion acquisition of homebuilder Taylor Morrison. These activities reduced Berkshire's cash reserves from a record $380 billion to $365 billion.