Introduction

In a landmark portfolio shift that has Wall Street buzzing, Warren Buffett's Berkshire Hathaway has disclosed a new $4.9 billion stake in Alphabet, the parent company of Google. The move, revealed in its Q3 2025 filing just hours ago, signals a powerful vote of confidence in the tech giant's AI-driven future and comes as the conglomerate continues to trim its monumental position in Apple Inc.

What

On November 18, 2025, Berkshire Hathaway's mandatory 13F filing with the SEC revealed the acquisition of 17.8 million shares of Alphabet's Class A stock (GOOGL) during the third quarter, establishing a significant new position that immediately becomes one of the firm's top ten holdings.

Why

The primary catalyst is a decisive strategic reallocation towards companies leading the artificial intelligence revolution. While Apple has been the undisputed cornerstone of Berkshire's modern portfolio, Alphabet's aggressive and foundational work in AI presents a different, and potentially more explosive, growth trajectory. This bet aligns with a broader market narrative that views Alphabet's deep investments in AI, cloud computing, and its unassailable digital advertising empire as the key drivers for durable, long-term earnings—a classic Buffett play on enduring value.

Impact

Immediately, Alphabet's stock gained traction in after-hours trading, as a Buffett endorsement remains one of the most potent signals in financial markets. For Apple, while the ongoing trim is a small fraction of Berkshire's total holding, it fuels the persistent debate about the iPhone maker's future growth drivers and leadership succession. This high-profile rotation could prompt institutional investors to re-evaluate their own tech holdings, potentially shifting capital towards AI-centric firms over mature hardware giants. The move diversifies Berkshire's tech exposure and reduces its massive concentration risk in Apple.

Action Steps

Investors should monitor Berkshire's subsequent filings to determine if this is a one-time entry or the beginning of a larger accumulation in Alphabet and a continued, systematic reduction in Apple. Analysts must now reassess valuation models for both tech titans, factoring in this powerful sentiment shift from one of the world's most influential investors. Portfolio managers should urgently review their own concentration risk in mega-cap tech and consider if a similar rebalancing is warranted to capture the next phase of technological growth.

Analyst Opinions

  • Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, has previously commented on the need for leadership evolution at Apple to define its next chapter, a sentiment that adds critical context to Berkshire's decision to reallocate capital away from the iPhone maker.
  • Broader Wall Street sentiment has been increasingly optimistic on Alphabet, with many analysts raising price targets following its recent strong earnings reports. The Berkshire investment is seen as a powerful validation of this bullish outlook, underscoring deep confidence in the fundamental strength of the digital advertising industry and its AI-powered future.