In the third quarter of 2025, Berkshire Hathaway disclosed that it had taken a multi-billion-dollar stake in Alphabet, marking the first time Warren Buffett or his deputies have held a position in the search-engine giant. The investment was large enough to rank Alphabet as the 13th largest holding in Berkshire’s equity portfolio by market value at quarter-end. Although the precise timing of the buy was not specified, regulatory filings confirm the position was established before September 30, 2025, following years of hesitation after Buffett’s 2017 comments on Alphabet’s potential.

The addition of Alphabet shifts Berkshire’s technology exposure beyond its existing positions in Apple and other select names. Alphabet’s weight in the portfolio is estimated to exceed 2% of consolidated common equity holdings, helping to diversify revenue streams away from consumer staples and insurance businesses. This move follows a trend of increasing allocations to high-growth businesses, with Alphabet joining the top 15 alongside firms in energy, consumer goods and financial services that collectively account for more than half of Berkshire’s equity market value.

Berkshire’s decision reflects a renewed focus on companies with sustainable competitive advantages. Alphabet has delivered double-digit revenue growth across search, advertising, cloud services and hardware, underpinned by its network-effect moat. In 2024 the company generated $350 billion in advertising revenue—an 18.7% compound annual increase since 2011—and rolled out an AI-driven Overview feature that now serves two billion monthly users. Buffett has long emphasized the importance of durable moats, and Alphabet’s market-leading positions and data-driven ecosystem appear to have met his criteria for a long-term holding.

The entry into Alphabet signals Berkshire’s willingness to pay up for high-quality growth at the right price, even after a 559% rally since mid-2017. For investors, Berkshire’s move underscores the value of network-effect businesses capable of reinvesting cash flow into innovation. While Berkshire remains known for its conservative underwriting profits and cash-flow generation, the addition of Alphabet highlights a balanced approach that blends traditional value investing principles with select exposure to transformative technology trends.