Berkshire Hathaway Increases Stake in Alphabet Amid AI Growth
Berkshire Hathaway has significantly increased its investment in Alphabet, now holding a $36.6 billion stake that makes it the third-largest position in Berkshire's portfolio. This includes both Class A and C shares of Alphabet (GOOGL/GOOG), which have surged by 70% over the past year due to strong performance as an AI hyperscaler. Warren Buffett, now chairman after retiring as CEO at the end of 2025, initiated this position last year. The investment was bolstered in Q2 with a $10 billion private placement and open market purchases. Berkshire's confidence is rooted in Alphabet’s strong economic moat, network effects from Google Search and YouTube, competitive advantages in cloud computing, and its ability to leverage data. Alphabet plans significant capital expenditures for AI infrastructure, which has led to negative free cash flow but remains profitable with a 35% operating margin. Despite the stock's recent gains, it is now trading at a lower P/E ratio of 17.4 compared to last year.
Topics: 13F filing AI Alphabet Berkshire Hathaway Warren Buffett