Berkshire Hathaway's $4.9B Stake in Alphabet Signals Tech Shift

November 17, 2025 at 19:34 UTC

4 min read

Alphabet stock chart rising with Berkshire Hathaway and Alphabet logos, highlighting $4.9B investment news

Key Points

Berkshire Hathaway disclosed a $4.9 billion stake in Alphabet, acquiring approximately 17.85 million shares as of September 30, 2025.
The investment marks a rare and significant move into a major technology company by Berkshire, historically cautious about tech stocks.
Alphabet shares surged over 5% in premarket trading following the disclosure, reaching near all-time highs around $290 per share.
The stake coincides with Warren Buffett's planned retirement as Berkshire CEO at the end of 2025 and reflects growing confidence in Alphabet's AI and cloud growth prospects.

Berkshire Hathaway's Landmark Investment in Alphabet

In a notable development on November 17, 2025, Berkshire Hathaway revealed through a quarterly 13F filing that it had acquired a substantial stake in Alphabet Inc., the parent company of Google. The filing showed Berkshire owned approximately 17.85 million shares valued at about $4.9 billion as of September 30, 2025. This investment represents Berkshire's 10th largest equity holding and is one of the most significant technology bets the conglomerate has made in recent years. The move surprised many investors and market watchers given Berkshire's historical reluctance to invest heavily in high-growth technology companies. Warren Buffett, the legendary investor and Berkshire's CEO, has traditionally viewed tech stocks with caution, often framing his Apple investment as a consumer-products play rather than a conventional technology bet. The new Alphabet position marks a rare and strategic shift in Berkshire's portfolio approach, signaling a broader acceptance of technology's central role in the economy.

Market Reaction and Alphabet's Stock Performance

Following the disclosure of Berkshire Hathaway's stake, Alphabet's shares experienced a significant rally, climbing more than 5% in premarket trading and reaching prices near $290 per share, close to the stock's 52-week high of $291.31. This surge reflected investor enthusiasm and was interpreted as a strong vote of confidence in Alphabet's business model and growth trajectory. Alphabet's stock has been a standout performer in 2025, rising approximately 46% year-to-date, driven by accelerating artificial intelligence initiatives, expanding cloud computing profitability, and robust advertising revenue. The stock trades at a forward price-to-earnings ratio of about 25, which is lower than many of its AI-focused peers such as Microsoft and Nvidia, making it relatively attractive on a valuation basis. Technical indicators also suggest a solid foundation for continued momentum, with the stock trading well above its 50-day and 200-day moving averages and maintaining a neutral relative strength index, indicating room for further gains without being overbought.

Strategic Context and Leadership Transition at Berkshire

The timing of Berkshire's investment in Alphabet is particularly noteworthy as it coincides with Warren Buffett's planned retirement as CEO at the end of 2025 after a six-decade tenure. Greg Abel, Berkshire's longtime lieutenant, is set to succeed Buffett as CEO. The purchase of Alphabet shares likely involved input from Buffett's portfolio managers Todd Combs and Ted Weschler, who have increasingly influenced Berkshire's stock portfolio and have been responsible for previous tech-related investments such as Amazon. This move may signal a strategic broadening of Berkshire's 'circle of competence' to include more technology companies, reflecting the evolving market landscape where artificial intelligence, cloud computing, and digital advertising are reshaping competitive dynamics. Buffett and his late partner Charlie Munger had previously acknowledged missing the opportunity to invest in Google earlier, describing it as a mistake. The new stake in Alphabet can be seen as a long-delayed course correction and a recognition of the company's dominant position in key growth areas.

Portfolio Adjustments and Broader Market Implications

Alongside the acquisition of Alphabet shares, Berkshire Hathaway has been actively adjusting its portfolio by trimming its stake in Apple by approximately 15%, reducing the number of Apple shares from around 280 million to 238.2 million. Despite this reduction, Apple remains Berkshire's largest holding, valued at roughly $60.7 billion. The conglomerate also pared its position in Bank of America and exited its stake in DR Horton, while increasing holdings in companies like Chubb and Domino's Pizza. These moves have contributed to Berkshire's cash reserves reaching a record $381.7 billion. The investment in Alphabet amid a cautious market environment, where some investors are concerned about the high valuations of AI-related stocks and the potential for a market rotation away from technology, underscores Berkshire's confidence in Alphabet's fundamentals and long-term growth prospects. The stake also comes at a time when Alphabet faces regulatory scrutiny, including ongoing antitrust litigation and significant fines in the European Union related to its advertising technology business. Nonetheless, the market has responded positively to Berkshire's endorsement, viewing it as a validation of Alphabet's strategic direction and resilience.

Key Takeaways

Berkshire Hathaway's $4.9 billion investment in Alphabet marks a significant shift toward embracing major technology companies.
The stake reflects confidence in Alphabet's leadership in AI, cloud computing, and digital advertising despite regulatory challenges.
Warren Buffett's impending retirement and the involvement of his portfolio managers suggest a strategic evolution in Berkshire's investment approach.