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Berkshire Hathaway has made a surprising investment in Alphabet, the parent company of Google. The company bought about $4.9 billion worth of shares. This pushed Alphabet’s stock up by more than 5%.
Berkshire currently owns 17.85 million Alphabet shares. The stake is worth around $4.93 billion at the current stock price. Berkshire usually avoids big technology companies. It prefers banks, energy, and consumer products. This purchase is unusual for the company.
Tech companies are spending huge sums on artificial intelligence. Alphabet is investing billions in new data centers and computer chips to support AI. Some investors worry that this spending may not be sustainable. Berkshire’s move is seen as a vote of confidence in Alphabet’s long-term plans.
Warren Buffett, known as the “Oracle of Omaha,” will step down as CEO of Berkshire Hathaway at the end of 2025 after nearly 60 years. It is not clear if Buffett personally approved the purchase or if it was made by his managers, Todd Combs, Ted Weschler, or the future CEO Greg Abel.
Experts say Berkshire is being careful. Alphabet is a strong company with solid business and reliable operations. Its stock is valued lower than other tech giants like Nvidia or Microsoft. This makes it a safer choice for investment.
Berkshire further reduced its stake in Apple from 280 million shares to 238.2 million. Apple is still its largest holding, worth more than $60 billion. Berkshire also cut some shares in Bank of America.
Alphabet shares have risen about 46% this year. Berkshire’s investment shows confidence in Alphabet’s future, especially as AI technology grows.
Even as Buffett prepares to retire, Berkshire is showing it can still make smart, bold decisions. Investing in Alphabet balances caution with opportunity in a changing market.
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