Warren Buffett has long admitted that one of his biggest investing oversights was failing to buy shares of Google in its early years. Two decades later, that regret has turned into action. Berkshire Hathaway has disclosed a new position in Alphabet Inc valued at approximately 4.3 billion US dollars, marking one of the most notable shifts in the firm’s long-standing investment philosophy. The announcement immediately boosted market sentiment around Alphabet, with shares rising after the filing became public.
Berkshire Hathaway revealed in its third-quarter regulatory report that it now holds 17.85 million shares of Alphabet. The position surprised analysts and investors alike because Buffett has historically avoided high-growth tech companies, calling them too difficult to evaluate. Instead, the firm has traditionally focused on industries such as insurance, banking, railroads and energy, where predictable cash flows support long-term value investing. The move toward Alphabet represents a meaningful departure from that pattern.
Buffett has repeatedly acknowledged missing early chances to invest in businesses such as Alphabet and Amazon, companies that later became major drivers of the digital economy. However, the timing of Berkshire’s entry suggests a strategic reassessment rather than a simple reversal of personal regret. Alphabet has solidified itself as one of the most profitable companies in the world, generating an estimated 88 billion US dollars in free cash flow in 2024. Its core advertising operations continue to dominate global digital marketing, while Google Cloud has become a significant growth engine.
Alphabet’s accelerating investment in artificial intelligence also appears to have influenced Berkshire’s decision. The company has introduced new capabilities through its Gemini AI platform, positioning itself as a major competitor in the next phase of computing technology. Despite market concerns over an AI-fueled valuation bubble, analysts note that Buffett is unlikely to act on speculation. Instead, his decision suggests he views Alphabet’s earnings power, operating margins and diversified revenue streams as durable enough to justify long-term ownership.
Following the disclosure, Alphabet stock traded near its recent highs, closing at 276.41 US dollars per share. Its latest quarterly results included revenue of 84.7 billion US dollars and net income of 23.8 billion US dollars, reinforcing investor confidence. Market watchers described the uptick as another example of the “Buffett effect,” where companies benefit from elevated credibility simply through Berkshire’s endorsement.
The Alphabet purchase is also being interpreted as part of Berkshire’s long-term succession planning. Greg Abel, the company’s designated future leader, is considered more open to investments in modern technology companies. While Buffett remains closely involved in major capital decisions, the firm’s evolving portfolio signals growing acceptance of technology-driven businesses that demonstrate consistent profitability and market leadership.
For Alphabet shareholders, Berkshire’s entry acts as a validation of the company’s strategic direction as it expands deeper into cloud computing and AI. For Buffett, it represents a late but deliberate acknowledgment that digital-era economics can still meet the value-investing principles he has championed for more than half a century.
