Key facts
- Warren Buffett initiated Berkshire Hathaway's investment in Alphabet.
- Berkshire Hathaway's stake in Alphabet is valued at approximately $31 billion.
- Buffett regrets not investing in Alphabet earlier.
- Alphabet shares rose nearly 4% on Wednesday.
- Alphabet is Berkshire's sixth-largest holding, representing 6% of its portfolio.
- Buffett acknowledged concerns about AI capital expenditure but sees Alphabet as a likely winner.
Warren Buffett revealed that he was the one who decided for Berkshire Hathaway to invest billions of dollars into Alphabet, the parent company of Google. Speaking in a recent interview, Buffett expressed regret that the investment was not made sooner, noting that the conglomerate now holds approximately $31 billion worth of Alphabet stock. This investment makes Alphabet Berkshire's sixth-largest holding, accounting for 6% of its total portfolio. Shares of Alphabet saw a nearly 4% increase on Wednesday, contributing to a 17% rise for the year. Buffett also commented on the significant capital expenditure companies are undertaking in the artificial intelligence race, acknowledging investor concerns about monetization. However, he believes Alphabet is well-positioned to emerge as a leader in AI, stating it is more likely to be a winner than 90-95% of companies on Wall Street. He indicated that while he doesn't like Alphabet as much as four to five other businesses Berkshire owns, he sees its AI investments as a necessary strategic move.