Berkshire Hathaway's Q3 equity portfolio disclosed a new $4.3 billion position in Alphabet (GOOGL), making it the 10th largest holding, while simultaneously reducing its Apple exposure by 14.9%. This significant investment, which prompted a 4% after-hours rise in Alphabet shares, suggests a strategic focus on AI-driven growth, leveraging Alphabet's robust performance in AI initiatives, strong earnings, and a comparatively attractive valuation within the 'Magnificent Seven' tech cohort.
Berkshire Hathaway's Q3 2025 equity portfolio revealed a significant new $4.3 billion position in Alphabet (GOOGL), establishing it as Berkshire's tenth-largest holding. This strategic move coincided with a 14.9% sequential reduction in Berkshire's Apple (AAPL) exposure, though Apple remains its largest holding. The disclosure prompted a notable 4% surge in Alphabet shares during after-hours trading on November 14, 2025. The investment underscores Alphabet's robust operational performance and leadership in artificial intelligence. Alphabet recently surpassed revenue and earnings estimates, driven by a 33.5% surge in Google Cloud revenues, beating the Zacks Consensus Estimate by 3.25%. Furthermore, products built on its generative AI models saw over 200% year-over-year revenue growth in Q3 2025, with Gemini's monthly active users increasing to 650 million. Alphabet's increased 2025 capital spending of $91-93 billion signals continued commitment to AI infrastructure expansion. Despite its strong growth, GOOGL trades at a forward P/E of 26.68x, which is below the tech sector's 30.75x and Microsoft's 32.31x, suggesting a comparatively attractive valuation. This valuation, combined with a Zacks Rank #2 (Buy) and a "B" Growth and Momentum Score, highlights its potential.
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