Berkshire Hathaway's $4.3B Alphabet Stake Marks Buffett's Final Quarter

November 15, 2025 at 07:15 UTC

5 min read

Berkshire Hathaway invests $4.3B in Alphabet, highlighting Buffett's tech sector shift

Key Points

Berkshire Hathaway acquired a $4.3 billion stake in Alphabet, purchasing 17.85 million shares in Q3 2025, making it the conglomerate's 10th largest holding.
The investment in Alphabet represents a notable shift for Warren Buffett, who traditionally avoided high-growth tech stocks, focusing instead on value investments.
Berkshire Hathaway reduced its Apple stake by 15% during the quarter, selling $10.6 billion worth of shares, continuing a trend of portfolio trimming ahead of Buffett's planned CEO departure.
Other major investors like Bill Ackman and Stanley Druckenmiller made contrasting moves on Alphabet, with Ackman reducing his stake and Druckenmiller maintaining a smaller position.

Berkshire Hathaway's Strategic Entry into Alphabet

In the third quarter of 2025, Berkshire Hathaway disclosed a significant new position in Alphabet Inc., the parent company of Google, YouTube, and Waymo. The conglomerate purchased approximately 17.85 million shares valued at $4.3 billion as of September 30, 2025, according to regulatory filings with the U.S. Securities and Exchange Commission. This acquisition elevated Alphabet to Berkshire's 10th largest equity holding, accounting for about 1.6% of the portfolio. The move marks a rare and notable departure from Warren Buffett's longstanding investment philosophy, which traditionally eschewed high-growth technology companies in favor of businesses within his 'circle of competence' such as insurance, banking, and railroads. Buffett has previously expressed regret over missing early investment opportunities in Google, acknowledging that Berkshire 'blew it' by not investing sooner despite early insights into Google's advertising potential through Berkshire's own Geico unit. The purchase of Alphabet shares is believed to have been initiated by Berkshire's investment managers Todd Combs or Ted Weschler, who have shown a greater willingness to engage with technology stocks. Alphabet's stock has surged 46% year-to-date, fueled by strong demand for artificial intelligence and growth in its cloud business, making it a standout performer in the market.

Portfolio Adjustments: Apple and Other Holdings

Alongside the new investment in Alphabet, Berkshire Hathaway continued to reduce its stake in Apple Inc., a company Buffett has held for years and often described as more of a consumer products company than a pure technology firm. During the third quarter, Berkshire sold approximately $10.6 billion worth of Apple shares, reducing its holdings by 15% to about 238 million shares valued at roughly $61 billion at the end of September. This reduction is part of a broader trend of portfolio trimming, as Berkshire has sold nearly three-quarters of its original 905 million Apple shares over recent quarters. The conglomerate also pared its Bank of America position by 6%, selling $1.9 billion worth of shares, and reduced its holdings in VeriSign by $1.2 billion. Despite these sales, Apple remains Berkshire's largest equity holding. The third quarter marked the 12th consecutive quarter in which Berkshire was a net seller of stocks, with $6.4 billion spent on purchases but $12.5 billion in sales. This cautious approach reflects Buffett's challenges in finding attractive deals amid high stock valuations, increased competition for acquisitions, and less appealing buybacks given Berkshire's own stock price near all-time highs.

Context of Buffett's Leadership Transition and Investment Philosophy

The third-quarter filings represent the last detailed equity portfolio disclosure before Warren Buffett's planned departure as Berkshire Hathaway's CEO, ending a remarkable 60-year tenure. Buffett transformed Berkshire from a struggling textile mill into a diversified conglomerate with a market value exceeding $1 trillion, acquiring numerous subsidiaries such as Geico and Dairy Queen, and building substantial stakes in companies like Coca-Cola and American Express. His investment strategy, rooted in value investing principles learned from Benjamin Graham, emphasizes acquiring understandable businesses with favorable long-term prospects, operated by honest and competent management, and available at attractive prices. The recent investment in Alphabet signals a potential shift or broadening in Berkshire's approach, possibly influenced by his investment managers, as Buffett himself has historically been cautious about technology stocks. This move may also reflect recognition of the evolving market dynamics, particularly the prominence of artificial intelligence and cloud computing in driving growth for companies like Alphabet.

Other Notable Investor Moves on Alphabet and Market Implications

While Berkshire Hathaway increased its position in Alphabet, other prominent investors made contrasting moves during the same period. Bill Ackman’s Pershing Square Capital Management reduced its stake in Alphabet Class A shares by approximately 10%, selling 519,007 shares and decreasing its portfolio impact by 0.67%. Ackman’s fund holds a diversified portfolio with significant positions in companies such as Uber Technologies, Brookfield, and Restaurant Brands International. Meanwhile, Stanley Druckenmiller’s Duquesne Family Office maintained a smaller position in Alphabet, holding 102,200 shares as part of a dynamic and actively managed portfolio that also includes new positions in Amazon and Meta Platforms. Druckenmiller’s approach reflects a nimble investment style focused on capturing growth opportunities, particularly in healthcare and technology sectors. These varied investor actions underscore differing perspectives on Alphabet’s valuation and growth prospects amid a market environment increasingly influenced by artificial intelligence and digital transformation. Alphabet’s stock price responded positively to Berkshire’s investment news, rising approximately 1.5% in after-hours trading, and the company announced a $40 billion investment in data centers in Texas, further signaling its commitment to expanding infrastructure to support AI and cloud services.

Key Takeaways

Berkshire Hathaway’s $4.3 billion investment in Alphabet marks a significant strategic shift for Warren Buffett’s firm, embracing a major technology company for the first time in decades.
The reduction in Apple shares continues Berkshire’s trend of portfolio rebalancing ahead of Buffett’s CEO departure, reflecting cautious capital deployment amid high market valuations.
Investment managers Todd Combs and Ted Weschler likely played a key role in the Alphabet acquisition, indicating evolving management influence on Berkshire’s portfolio composition.
Divergent moves by other major investors like Bill Ackman and Stanley Druckenmiller highlight varied strategies and outlooks on Alphabet’s role in portfolios amid the AI-driven market landscape.