Warren Buffett’s investment shift includes a major stake in Alphabet.
What is Berkshire Hathaway Alphabet?
Berkshire Hathaway is a large investment company, run by Warren Buffett. He acquired it in 1965. It was initially a textile company, but Buffett transformed it into an investment firm. Today, its market value exceeds $1 trillion. The company operates multiple businesses, including railways, energy, and industrial firms, as well as retail brands like Dairy Queen and Fruit of the Loom. Berkshire also invests in stocks. Buffett is known for his value investing, so he invests in cheap but strong companies. He holds them for the long term and avoids technology companies. There are some exceptions, such as Apple, which Buffett considers a consumer products company. The company now holds US stocks worth $283.2 billion and has a record cash reserve of $381.7 billion. This demonstrates Berkshire’s cautious approach, avoiding large acquisitions while market valuations are high. There has been no stock buyback in the past year.
Who is Warren Buffett?
Warren Buffett is the world’s richest investor. He is 95 years old and known as the Oracle of Omaha, and he learned from Benjamin Graham. Graham is the father of value investing. Despite this, Buffett lives a simple life. He drinks Coca-Cola, and Cherry Coke is his favorite. Buffett has been CEO of Berkshire for 60 years. Now he is retiring, and Greg Abel will become CEO from January 1, 2026, and this change is significant. Investors are watching what the new leadership will do. Buffett will still remain chairman, but investment decisions may change. Buffett’s partner was Charlie Munger. He passed away in 2023, and Munger taught Buffett to focus on quality companies. Both expressed regret for not investing in Google. In a 2019 meeting, they said they made a mistake.
New Investment in Alphabet
Berkshire bought 17.85 million shares in Alphabet. This is until September 30, 2025. Furthermore, the value is $4.3 billion. Alphabet is the company’s 10th-largest US stock holding. Alphabet is Google’s parent company. Google operates Search, YouTube, and Android. It also has a cloud business. This investment is surprising. Buffett tends to avoid tech companies. But perhaps Todd Combs or Ted Weschler did. They are portfolio managers, so they also invested in Amazon. Berkshire owns $2.2 billion worth of Amazon shares. Despite this, Alphabet shares are up 46% year-to-date. AI demand has fueled the growth of the cloud business. Google earns revenue from advertising. Buffett discovered Google through Geico Insurance. Geico was an early customer of Google. However, Buffett didn’t invest. Now he has, but Alphabet shares rose 1.7% after the news broke.
Apple Shares Selling on Berkshire Hathaway Alphabet
Berkshire reduced its holdings in Apple. In the third quarter, it fell from 280 million to 238.2 million shares. This is a 15% cut. The value is now $60.7 billion. Apple is still the largest holding. Berkshire previously held over 905 million shares. Now three-quarters have been sold. Furthermore, Buffett has been investing in Apple since 2016. He likes the iPhone, but is selling now.
Perhaps the valuation is high. Apple’s P/E ratio may be high. Also, this selling has been ongoing since last year. Sell in 2024 as well Now more in 2025. Apple shares are performing well. But Berkshire is diversifying. Other portfolio changes that Berkshire made include selling 6% of its shares in Bank of America. Now valued at less than $30 billion. It completely exited homebuilder DR Horton. He also cut VeriSign and DaVita, and bought more shares in Chubb Insurance and Domino’s Pizza. He sold $12.5 billion in stock between July and September, totaling $6.4 billion in stock.
What could be the reasons of Berkshire Hathaway Alphabet?
Why is Berkshire investing in Alphabet? Buffett lamented Google, saying they missed it. Google’s business model is similar to Geico. High margins. Growth is now driven by AI, cloud computing, and Google search is dominant. YouTube is a major platform. The reason for selling Apple is its valuation. Apple shares have become expensive, with a P/E above 30. Buffett prefers cheap stocks. There’s a tech bull market. He’s cautious, diversifying. He shouldn’t rely too heavily on Apple, and he has record cash reserves. He’s looking for big deals, but they’re not finding them in the expensive market. Buffett recommends buying good companies at good prices, factoring in new leadership. Greg Abel is coming in, but he’s from the energy business. His investment style could change. But Buffett is still chairman.
Discussing the impact on the market,
This news sent Alphabet shares up 1.7% after hours, suggesting investors follow Buffett. This boosts their investment confidence. Alphabet has a large market cap. Google is investing in AI, like the Gemini model. Cloud revenue has increased. So, what impact will Apple’s stock have? It could go down slightly. But Apple is strong. The iPhone 17 is coming. Apple’s intelligence features. But Berkshire’s sale signals a signal. Check out valuations, which show tech stocks are high relative to the overall market. The Nasdaq is up. But Berkshire is cautioning. Fears of a recession? A slowing economy? Investors are concerned.
Alphabet’s Business
Alphabet is the parent of Google. Founded in 1998 by Larry Page and Sergey Brin. It started with a search engine. Now it’s the world’s largest search engine. 90% market share, plus YouTube videos. Despite its platform size, it has 2 billion users. Android mobile OS. 3 billion devices. Google Cloud. Competition from AWS and Azure. Growth from AI, as well as other bets like Waymo. Self-driving cars. Verily Health. Alphabet’s revenue is mostly from AI. Over $300 billion by 2024. Profits are high, so invest in AI. Gemini AI. Competition from ChatGPT. Google, now Gemini, has AI tools in the cloud. The future is bright, but regulatory risks are high. Antitrust cases are facing challenges in the US and Europe.
Apple’s Business on Berkshire Hathaway Alphabet
Apple was founded by Steve Jobs in 1976. iPhone, iPad, Mac, and now services like the App Store and Apple Music. Revenue exceeds $380 billion, with iPhone accounting for 50% of revenue. Sales in China, but competition. Huawei. Apple’s AI. Apple Intelligence. iPhone in 2016. Siri is better. Apple is valued at $3 trillion and the world’s most valuable company. But growth is slow. Services are growing. But the challenge is in the products. Questions about Berkshire’s sale. Is Apple overvalued? What will Berkshire do with Greg Abel? Abel Energy Expert. He runs Berkshire Energy. Will his investments focus more on tech? Or traditional? Investors will watch. Still good for Alphabet. Buffett’s support. AI growth. But regulation, monopoly charges against Google and challenges for Apple. Innovation continues. Vision Pro. AR/VR. Car project halted, but health features
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