Key Takeaways:
Warren Buffett told CNBC he personally initiated Berkshire Hathaway's investment in Alphabet, now a $20 billion-plus position in the conglomerate's portfolio.
"I initiated the Alphabet investment," Buffett, 95, chairman of Berkshire Hathaway, said in a CNBC interview on July 15. "It's a business with a tremendous moat."
Berkshire holds about 66.4 million Alphabet shares across its Class A and Class C stock, making the Google parent its fourth-largest equity position at 8.8% of the $348.2 billion portfolio, according to the company's latest 13-F filing. Successor Greg Abel, who became chief executive officer at the end of 2025, added to the position by buying 36.4 million shares in the first quarter and later signing off on a $10 billion private placement, bringing total investment in Alphabet to more than $20 billion.
The disclosure confirms the Oracle of Omaha personally approved one of Berkshire's biggest technology bets, a departure from his historical aversion to the sector. Alphabet now ranks alongside Apple at 20.6%, American Express at 15.3%, and Coca-Cola at 9.6% as Berkshire's top five holdings, according to the filing.
Abel has reshaped the portfolio since taking over, closing 16 positions and trimming the number of holdings to 29. Nearly 30% of Berkshire's equity portfolio is now concentrated in two technology stocks: Apple and Alphabet.
Buffett's endorsement carries weight beyond Berkshire. The billionaire co-founded the Giving Pledge and has donated more than $60 billion to philanthropy, including $6 billion in Berkshire stock on July 14. He has pledged to give away his remaining $140 billion stake by 2034.
Alphabet shares trade at about 24 times forward earnings, a discount to other mega-cap technology stocks, according to FactSet data. The company's Google Cloud revenue rose more than 60% in the latest quarter, and its backlog nearly doubled to about $460 billion, driven by artificial intelligence demand.
The confirmation that Buffett personally chose Alphabet signals his conviction in the company's competitive moat and AI-driven growth trajectory. Investors will watch Berkshire's third-quarter 13-F filing for any further position changes under Abel's leadership.
This article is for informational purposes only and does not constitute investment advice.
