Alphabet Surges After Berkshire Unveils New Tech Bet
Alphabet shares climbed more than 5% Monday after Berkshire Hathaway revealed a new $4.3 billion position in the Google parent — one of the most significant tech additions to Berkshire’s portfolio in years.
The 13F filing shows Alphabet is now Berkshire’s 10th-largest equity holding, surprising some long-time observers given the firm’s historic reluctance toward fast-growing tech names. Apple has long been the exception, treated more like a consumer-goods leader than a software company.
The newest addition appears to reflect a continued evolution inside Berkshire’s $300B stock portfolio, where investment deputies Todd Combs and Ted Weschler play an increasingly influential role. Both have been behind several tech-oriented decisions in recent years, including the Amazon position in 2019. Still, the size of the Alphabet bet suggests buy-in from the top.
What Made Alphabet Attractive
Alphabet has been one of 2025’s standout performers, up roughly 46% year-to-date as investors reward the company’s accelerating AI trajectory and improving Google Cloud margins. Once a drag, Cloud is now a central driver of earnings growth.
Despite the stock’s run, Alphabet still trades at a discount versus other AI megacaps — a key point likely not lost on Berkshire’s team.
- Alphabet: ~25.5x next year’s earnings
- Microsoft: 32x
- Broadcom: 50.8x
- Nvidia: 41.9x
Alphabet’s combination of massive free cash flow, dominant market share, and more moderate valuation likely made the name appealing within Berkshire’s long-term value framework.
Some analysts also see this move as part of a generational transition at Berkshire, with Greg Abel preparing to step in as CEO next year. A more open stance toward technology investments could become a defining shift in the company’s next chapter.
A Full-Circle Moment for Buffett’s Firm
Buffett has openly said missing early Google was a major regret — especially since Berkshire’s GEICO unit was among Google’s earliest big advertisers. Seeing that business firsthand didn’t translate to an early investment, largely because Buffett felt outside his “circle of competence” on tech.
The new stake suggests Berkshire no longer sees Alphabet as a leap of faith, but as a mature, cash-rich AI leader with durable competitive advantages.
WSA Take
Berkshire’s move into Alphabet is a clear signal: even traditionally cautious, value-driven investors are leaning deeper into AI infrastructure and cash-flow-anchored tech. Alphabet’s mix of scale, defensible margins, and a more reasonable valuation gives it a unique place in the megacap AI race.
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