Berkshire Hathaway disclosed about $4.3 billion of Alphabet stock in a quarterly 13F filing — its tenth-largest holding — sending Alphabet shares up roughly 5% as markets opened; the position is likely from lieutenants Todd Combs or Ted Weschler and appears to have Berkshire blessing as Warren Buffett prepares to step down as CEO. The move underscores a potential broadening of Berkshire's tech exposure within its roughly $300 billion equity portfolio (Berkshire already holds Apple and about $2.2 billion of Amazon) and comes as Alphabet has rallied about 46% YTD on accelerating AI initiatives and improving Google Cloud profitability. Trading at a notably cheaper multiple than many AI-driven peers (about 25.5x next-year EPS versus Microsoft at 32x and Nvidia at 41.9x), Alphabet’s combination of strong free cash flow, dominant market position and attractive valuation likely made it a compelling pick for Berkshire’s team and could signal greater institutional confidence in the company’s AI-driven growth trajectory.
Berkshire Hathaway disclosed roughly $4.3 billion of Alphabet stock in a Sept. 30 13F filing, making it the firm’s 10th-largest equity holding and sending Alphabet shares up about 5% in morning trading; the move is notable given Warren Buffett’s historical caution on high-growth tech names. The position’s size and timing within Berkshire’s roughly $300 billion equity portfolio suggest the buy likely came from lieutenants Todd Combs or Ted Weschler and had at least tacit approval as Buffett prepares to step down as CEO at year-end. Alphabet has rallied approximately 46% year-to-date on accelerating artificial-intelligence initiatives and materially improving Google Cloud profitability, which the article cites as shifting from a margin drag to a key earnings driver. The stock trades at about 25.5x next-year EPS versus peers (Microsoft 32.0, Broadcom 50.8, Nvidia 41.9), and CFRA notes an attractive ~22x 2027 EPS valuation combined with strong free cash flow potential. The disclosure signals growing institutional comfort with Alphabet’s AI-driven growth and may encourage other value-oriented managers to re-evaluate exposure, but the investment is not an unequivocal endorsement from Buffett personally and coincides with a management succession that could alter portfolio posture. Investors should therefore weigh the favorable fundamentals and relative valuation against execution risk in Cloud margins and potential short-term volatility linked to portfolio reshuffling and leadership transition.
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