Alphabet shares surged on November 17 after Warren Buffett’s Berkshire Hathaway revealed a new investment in Google’s parent company, marking one of the conglomerate’s most significant tech bets in years.
Alphabet stock rose 3.1%, moving against the broader decline seen in most tech stocks early in the week.
The quarterly 13F filing showed that Berkshire owned about $4.3 billion worth of Alphabet shares as of September 30, making it the company’s 10th-largest holding. The move surprised many Buffett watchers, as the billionaire has typically shown little interest in high-growth technology companies. Meanwhile, Buffett has long regarded Apple—Berkshire’s largest holding—not as a tech firm but as a consumer-products company.
The investment in Alphabet was likely made by one of Buffett’s two deputies, Todd Combs or Ted Weschler, who have been gaining more influence over Berkshire Hathaway’s $300 billion equity portfolio. However, the size of the investment suggests it may have received Buffett’s approval. Buffett is set to step down as CEO at the end of this year.
Combs and Weschler have been behind many of Berkshire Hathaway’s technology investments, including the Amazon stake first purchased in 2019. Berkshire still holds $2.2 billion worth of Amazon shares today.
Why buy Alphabet?
Alphabet has been one of the market’s strongest performers this year, rising 46%, thanks to investor confidence in its aggressive AI strategy and rapidly improving margins in its cloud segment. Google Cloud—once a drag on profitability—has now become a key driver of earnings growth for the company.
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