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Warren Buffett invests $4.3 billion in Alphabet Inc as Google parent stock dances to new highs

Warren Buffett invests $4.3 billion in Alphabet Inc as Google parent stock dances to new highs

Warren Buffet has often expressed regret of not having invested in Google in its early years Photograph: (Others)

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Warren Buffett’s Berkshire Hathaway bought 17.85 million Alphabet shares worth $4.3 billion. The Google stock has seen a 'Buffet bump', signalling a rare tech bet by the Oracle of Omaha despite AI bubble concerns.
 

The Oracle of Omaha, Warren Buffett, did not make a bet on Google in its early years — a decision he has often publicly regretted. But now, the legendary investor has come full circle. His firm, Berkshire Hathaway, has bought shares worth 4.3 billion US dollars in Alphabet Inc, and the stock of the tech giant jumped following the announcement.

What Buffett did on Alphabet Inc

Buffett has generally avoided technology stocks, instead focusing on cash-steady, durable businesses. Thus, Berkshire Hathaway’s newly disclosed multibillion-dollar position in Alphabet was a surprise to markets and energised investors.
Buffett has repeatedly acknowledged missing early opportunities in companies like Google and Amazon. Berkshire’s third-quarter 2025 regulatory filing shows a new position of 17.85 million Alphabet shares, valued at about 4.3 billion US dollars. This marks a departure for Berkshire, which has typically favoured banking, energy and insurance stocks.

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Why Buffett invested in Alphabet Inc now

Buffett likely saw appeal in Alphabet’s enormous free cash flow, its dominant digital advertising business, growing cloud division, and emerging AI capabilities. Alphabet Inc generated roughly 88 billion US dollars in free cash flow in 2024. Its AI updates, powered by its Gemini platform, have strengthened its competitive position against rivals. For Buffett — always a value investor — these traits possibly resembled the durable economics he seeks in long-term holdings. Even amid warnings of an AI-driven stock bubble, Berkshire’s move suggests confidence that Alphabet’s fundamentals are strong enough to outweigh short-term market noise, according to analysts.

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Alphabet shares see a Buffet bump

After Berkshire’s disclosure, Alphabet shares rose. The initial stake value of about 4.34 billion US dollars for 17.85 million shares contributed to a modest lift in trading, reflecting the familiar “Buffett effect”, where his investments are seen as endorsements of a company’s intrinsic value. Alphabet stock remained near recent highs, having closed at US$ 276.41 apiece, supported by strong quarterly performance, including revenue of 84.7 billion US dollars and net income of 23.8 billion US dollars in its latest reported quarter.

Buffett’s Alphabet purchase: A strategic evolution for Berkshire

As Buffett’s investment firm prepares for a leadership transition — with Greg Abel set to take over — the Alphabet investment signals a willingness to selectively embrace tech giants with clear competitive advantages. For Alphabet shareholders, the move adds credibility to the long-term growth story of Google’s expansive ecosystem.

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Vinod Janardhanan

Vinod Janardhanan, PhD writes on international affairs, defence, Indian news, entertainment and technology and business with special focus on artificial intelligence. He is the de...Read More