Berkshire Hathaway’s Late Move Into Alphabet Marks One of Its Largest Stock Positions

Warren Buffett’s long-running regret about passing on Google has finally translated into action. Berkshire Hathaway began buying Alphabet shares in the third quarter of last year, and Buffett, along with newly appointed CEO Greg Abel, has since committed tens of billions of dollars to the position, turning the search giant into one of Berkshire’s biggest holdings.

The story behind the purchase dates back roughly a decade. Buffett publicly acknowledged at that time that failing to buy Google years earlier had been a mistake. His familiarity with the business came through an unusual channel: GEICO, Berkshire’s consumer insurance unit, was paying in the range of $10 to $11 per click for advertising on Google’s search engine — a firsthand look at the economics of the ad business. By the 2017 shareholder meeting, Buffett said he had missed the opportunity but would not bet against the company.

The stock’s performance since then has underscored the scale of that early hesitation. Alphabet’s shares climbed roughly 9,000% in the period before Berkshire entered the position, a run that dwarfed the gains available to Buffett after he finally stepped in. The purchase ranks among the largest single-stock investments Berkshire has made in recent memory, a notable shift for a portfolio historically centered on financials and consumer brands.

The move also lands at a transitional moment for Berkshire itself. With Abel now leading the conglomerate, the Alphabet buildup represents one of the most consequential portfolio decisions of the new era, even as Buffett remains closely involved in investment decisions.

Alphabet shares traded at $338.46 in recent trading, down 1.3% from a prior close of $342.93, valuing the company at roughly $4.14 trillion. The company operates through three reporting segments: Google Services, Google Cloud, and Other Bets, with its search and advertising business continuing to anchor results.

For context, tech-sector distribution names have also seen recent volatility. Climb Global Solutions, an IT distribution and solutions company, traded at $27.84, down 1.42% on the day, with a market capitalization near $466 million.

Berkshire’s Alphabet stake now stands as a case study in how even the most disciplined investors revisit missed opportunities — and how a firsthand look at a business, in this case through GEICO’s ad spend, can inform decisions years later.

What to watch

• Berkshire Hathaway’s quarterly 13F filings for further adjustments to the Alphabet position under Abel’s leadership.
• Alphabet’s upcoming earnings report, including commentary on Google Cloud growth and advertising trends.
• Any disclosure of Buffett’s ongoing role in portfolio decisions following the CEO transition.

Source: original release