Meet the Genius Quantum Computing Stock Warren Buffett and Berkshire Hathaway Just Bought

Berkshire Hathaway took a position in Alphabet during Q3, though it is unclear whether Warren Buffett or his deputies executed the trade; the purchase was around $200/share, roughly 19x forward earnings. While Alphabet’s quantum efforts — notably its Willow chip running a verifiable algorithm reportedly 13,000x faster than the world’s fastest supercomputer — are impressive, Berkshire’s investment is more plausibly driven by Alphabet’s strong, cash-generative core business (Google search revenue rose 15% in Q3) and momentum in AI and cloud. The stake reflects classic Berkshire criteria—durable competitive advantages and cash flows—with quantum and other “long-shot” bets providing optional upside rather than the primary investment thesis.

Analysis

Berkshire Hathaway disclosed a Q3 position in Alphabet, purchased at about $200 per share — roughly 19x forward earnings — though public filings do not show whether Warren Buffett or his deputies Ted Weschler and Todd Combs executed the trade as Buffett prepares to step down at year-end. The stake represents a move into a large-cap tech name despite Berkshire's historical preference for simple, cash-generative businesses; the article notes Alphabet's stock has risen since the purchase.

Alphabet's quantum effort drew attention after its Willow chip reportedly ran the first verifiable quantum algorithm 13,000x faster than the world's fastest supercomputer, but those results remain verifiable by classical systems. The coverage frames quantum as impressive yet speculative, unlikely to be the proximate driver of Berkshire's purchase.

The primary investment rationale emphasized is Alphabet's durable core: Google search revenue grew 15% in Q3, aided by generative AI integration, and the company has momentum in AI and cloud that should sustain cash flow generation. Quantum and other "long-shot" initiatives are treated as optional upside; the combination of strong fundamentals and institutional backing explains the bullish view for 2026 and beyond while highlighting execution and governance as risks to monitor.

Key Decisions for Investors

• Consider establishing or adding a core position in Alphabet given 15% Q3 search revenue growth, AI/cloud momentum and Berkshire's Q3 stake purchased near $200 (~19x forward earnings), while sizing exposure to reflect quantum as optional upside
• Monitor Google's quantum commercial milestones and verifiable performance beyond the Willow demonstration as potential catalysts but treat them as long-dated, low-probability drivers
• Watch Berkshire filings and any disclosure about which portfolio managers executed the trade (Buffett vs. Weschler/Combs) as a signal of sustained institutional conviction in tech exposure
• If already invested or risk-averse, employ disciplined position sizing or protective hedges (e.g., options or stop rules) because the stock has appreciated since Berkshire's purchase and technology execution risk remains