Berkshire Hathaway’s $4.9 Billion Alphabet Bet: Why Buffett Didn’t Pull the Trigger (2025 Update)
- The $4.9 Billion Alphabet Mystery: Buffett’s Fingerprints Absent
- Who’s Calling the Shots? The Abel Factor
- Apple Trims Continue—But Still King of the Portfolio
- Buffett’s Thanksgiving Letter: Passing the Torch
- International Holdings: Japan Bets Hold Steady
- FAQ: Berkshire’s Alphabet Move Explained
In a surprising move, Berkshire Hathaway added 17.8 million Alphabet shares worth $4.9 billion in Q3 2025—but Warren Buffett wasn’t behind the trade. This tech pivot breaks from Buffett’s historic avoidance of the sector (outside Apple) and raises questions about who’s steering Berkshire’s investment strategy as Greg Abel prepares to take the CEO role next year. Meanwhile, Berkshire continued trimming its Apple stake by 15%, now down 74% from its peak. We break down the portfolio shifts, analyze the likely decision-makers, and explore what this means for Berkshire’s post-Buffett era.
The $4.9 Billion Alphabet Mystery: Buffett’s Fingerprints Absent
Alphabet shares jumped 3.5% in after-hours trading when Berkshire’s Q3 2025 filings revealed the massive position—equivalent to nearly 0.5% of Google’s parent company. What’s turning heads isn’t just the size, but the stark departure from Buffett’s well-documented tech skepticism. "I’ve followed Berkshire for decades, and this trade smells different," says BTCC market analyst David Lin. "The timing’s curious too—Alphabet was already up 51% year-to-date when they bought, including a 37% surge during the acquisition quarter."
Sources: SEC FORM 13F (Q3 2025), TradingView (price data)
Who’s Calling the Shots? The Abel Factor
The Alphabet purchase aligns with clues from Berkshire’s 2019 annual meeting, where Buffett admitted he and Charlie Munger "screwed up" by not investing in Google earlier. Back then, Alphabet traded around $59 (split-adjusted)—now it’s hovering near $275. "That regret never translated to action under Buffett," notes Lin. "But incoming CEO Greg Abel doesn’t carry that baggage."
Abel, who’ll take Berkshire’s reins in 2026, has gradually assumed more investment responsibilities. The 61-year-old energy executive lacks Buffett’s tech allergy—he oversaw Berkshire’s growing stake in Snowflake during his BHE tenure. Portfolio managers Ted Weschler and Todd Combs (who built Berkshire’s Amazon position) are also prime suspects. "This has Weschler’s fingerprints all over it," suggests a Bloomberg Markets insider. "He’s been quietly pushing Berkshire into tech for years."
Apple Trims Continue—But Still King of the Portfolio
Berkshire sold another 15% of its Apple stake (worth $10.6 billion) in Q3, bringing total reductions to 74% since 2023. Yet even at 238 million shares, Apple remains Berkshire’s largest holding at $64.9 billion—21% of its equity portfolio. "They’re playing both sides," observes CNBC’s Becky Quick. "Diversifying into Alphabet while still believing in Apple’s consumer moat."
Other notable moves:
| Holding | Change | Current Value |
|---|---|---|
| Bank of America | -6.1% ($1.9B) | $29.9B |
| Verisign | Continued reduction | Undisclosed |
| Chubb | +$1.2B | $4.3B |
Buffett’s Thanksgiving Letter: Passing the Torch
The Oracle of Omaha’s annual Thanksgiving letter—a sprawling 7-page missive this year—hinted at the transition. After joking "I’ll keep a low profile... sort of," Buffett confirmed Abel will handle next year’s shareholder communications. The letter mixed folksy wisdom (a childhood story about fingerprinting nuns "in case one went rogue") with strategic clarity: Abel was praised as a "tireless worker and honest communicator."
Philanthropy updates:
- Gifts to children’s foundations increased 17% to $1.3B
- Each foundation received 400,000 Class B shares (up from 300,000)
- Susan Thompson Buffett Foundation maintained prior year’s donation level
International Holdings: Japan Bets Hold Steady
Berkshire maintained major positions in Japanese trading houses as of September 30, 2025:
The stakes in Itochu (held since March 2025) and Mitsubishi (August 2025) reflect Buffett’s bullishness on Japan’s deflation recovery—a thesis unchanged despite Alphabet’s headline-grabbing entry.
FAQ: Berkshire’s Alphabet Move Explained
Did Warren Buffett approve the Alphabet purchase?
Unlikely. Buffett has consistently avoided pure-play tech stocks, calling Alphabet "outside his circle of competence." The trade aligns more with lieutenants Abel, Weschler, or Combs.
Why keep selling Apple if it’s still Berkshire’s largest holding?
Portfolio rebalancing. At its peak, Apple comprised over 40% of Berkshire’s portfolio—a concentration risk Buffett historically avoids (remember Coca-Cola in the 1990s?).
How significant is the Alphabet position relative to Berkshire’s size?
At $4.9B, it’s roughly 1.2% of Berkshire’s $400B+ equity portfolio—meaningful but not transformative. Compare to Apple’s $65B position.
Will Greg Abel change Berkshire’s investment strategy?
Gradually. Abel respects Buffett’s principles but isn’t bound by his personal biases. Expect more tech exposure and possibly faster decision-making.
