Berkshire Hathaway’s $4.9 Billion Alphabet Bet Sparks Market Rally
Berkshire Hathaway's revelation of a $4.9 billion stake in Alphabet sent shockwaves through markets, with GOOGL shares surging 5.5% in premarket trading. The 17.85 million-share position, disclosed in a Friday filing, marks a rare tech foray for Warren Buffett's traditionally tech-averse conglomerate.
The timing raises intriguing questions about Berkshire's investment strategy during this leadership transition period. With Buffett preparing to hand the CEO role to Greg Abel in 2025, the filing leaves unclear whether this represents Buffett's final major play or signals a new direction under incoming leadership.
Market observers note the irony in Berkshire's move, recalling Buffett and Charlie Munger's 2019 admission about their Google investment regrets. The position's sheer size suggests either a major conviction bet or a symbolic closing of Berkshire's tech investment gap.