Berkshire Hathaway’s $4.9 Billion Alphabet Bet: Was It Buffett or His Successors?
- Why Did Berkshire Hathaway Suddenly Buy Alphabet Shares?
- Who’s Really Running Berkshire’s Investments Now?
- What Does This Mean for Berkshire’s Tech Strategy?
- How Are Buffett’s Personal Moves Tied to This?
- FAQs: Berkshire’s Alphabet Gambit
In a surprising move, Berkshire Hathaway disclosed a massive $4.9 billion stake in Alphabet (Google’s parent company) in its Q3 2025 filings—but the twist? Warren Buffett didn’t make the call. The investment, totaling 17.8 million Class A shares, marks a stark departure from Buffett’s traditional aversion to tech stocks outside Apple. Here’s the inside scoop on who likely pulled the trigger, why Alphabet’s 51% YTD surge didn’t scare them off, and what this means for Berkshire’s evolving strategy under soon-to-be CEO Greg Abel.
Why Did Berkshire Hathaway Suddenly Buy Alphabet Shares?
Berkshire’s Alphabet purchase—its largest Q3 acquisition—raised eyebrows given Buffett’s historical reluctance toward tech. The timing is curious: Alphabet had already rallied 37% in the quarter Berkshire bought. Sources suggest the move aligns with Greg Abel’s more tech-friendly approach. At Berkshire’s 2019 meeting, Buffett admitted he and Charlie Munger "blew it" by not investing in Google earlier, noting they "sat on their hands" despite seeing Google Ads’ dominance firsthand. Back then, Alphabet traded at ~$59/share. Abel, set to take over in 2026, isn’t shackled by that regret. Portfolio managers Ted Weschler or Todd Combs (who’ve handled tech bets before) could also be behind the trade.
Who’s Really Running Berkshire’s Investments Now?
Buffett’s Thanksgiving letter hinted at his gradual retreat: Greg Abel will pen next year’s shareholder letter and field annual meeting questions, while Buffett "sits quietly" with directors. Yet the Alphabet buy signals active shifts. Abel, described by Buffett as a "tireless worker and honest communicator," has steadily absorbed investment duties. Meanwhile, Berkshire trimmed its Apple stake by 15% ($10.6 billion) and Bank of America by 6.1% ($1.9 billion)—continuing a two-year trend. Apple remains Berkshire’s top holding at $64.9 billion (21% of its portfolio), but the cuts suggest repositioning.
What Does This Mean for Berkshire’s Tech Strategy?
The Alphabet bet breaks Buffett’s mold. He’s long framed Apple as a "consumer brand," not tech, and avoided Google. But with Abel and team at the helm, Berkshire may be pivoting. The purchase coincides with Alphabet’s AI breakthroughs, including Gemini’s integration across Google products. Notably, Berkshire’s filing valued the stake at $4.3 billion as of Sept. 30—meaning it’s already up ~14% in weeks. For context, Berkshire’s other major Q3 MOVE was a $1.2 billion boost to insurer Chubb.
How Are Buffett’s Personal Moves Tied to This?
Buffett’s 7-page Thanksgiving letter (double last year’s length) mixed nostalgia—like childhood hospital fingerprints—with succession clarity. He’s increasing donations to his kids’ foundations (now $1.3 billion yearly) and prepping them to manage his estate. Professionally, he’s handing Abel the reins but quipped, "I’ll ‘stay quiet’… more or less." The Alphabet buy might be his quietest endorsement yet of Abel’s vision.
FAQs: Berkshire’s Alphabet Gambit
Did Warren Buffett approve the Alphabet investment?
Unlikely. Buffett has avoided pure tech plays, and the trade’s size/style suggest Abel or Berkshire’s portfolio managers led it.
Why sell Apple to buy Alphabet?
Berkshire’s Apple stake is still massive ($64.9B). The shift may reflect Alphabet’s AI upside and valuation versus Apple’s slower growth.
How much has Berkshire’s Alphabet stake gained?
Based on Sept. 30’s $4.3B valuation and Alphabet’s recent ~3.5% pop, the position is now worth ~$4.9B—a quick $600M paper profit.
