Buffett's Berkshire Ends Tech Reluctance, Invests $4.9B in Alphabet's AI Expansion

Bitget App

Trade smarter

Bitget

News

Markets

Buffett's Berkshire Ends Tech Reluctance, Invests $4.9B in Alphabet's AI Expansion

Bitget-RWA2025/11/17 12:46

By:Bitget-RWA

- Berkshire Hathaway invests $4.9B in Alphabet , marking its first major tech bet amid CEO transition to Greg Abel. - The move contrasts with Buffett's traditional aversion to high-growth tech stocks, as it reduced Apple holdings by 15%. - Buffett acknowledged past tech missteps, aligning the investment with Alphabet's $40B AI expansion in Texas as a long-term bet. - Alphabet shares rose 5% premarket, though the stake remains 1.6% of Berkshire's portfolio, reflecting cautious optimism.

Berkshire Hathaway Inc., led by Warren Buffett, has invested $4.9 billion in

Alphabet

Inc., signaling a notable change in the company’s investment approach as it prepares for the transition from its 95-year-old CEO to Greg Abel. This purchase,

revealed in a 13F filing

, involved Berkshire buying 17.9 million shares of the

Google

parent company, which accounts for 0.31% of Alphabet’s total shares

as detailed in the filing

. Following the news, Alphabet’s stock rose 1.7% in after-hours trading

based on market data

, showing investors’ faith in the company’s AI and cloud strategies.

This move stands in contrast to Berkshire’s usual reluctance toward fast-growing tech stocks, a stance Buffett has long upheld. Although Apple Inc. has been Berkshire’s largest stock holding for years,

the firm recently cut its Apple stake by 15%

, leaving it with $60.7 billion invested. Buffett has previously described Apple as more of a consumer brand than a true technology company

according to his public remarks

. The decision to invest in Alphabet points to a broader shift in how Berkshire allocates its capital

as noted in financial disclosures

In the third quarter, Berkshire also made several portfolio adjustments. The company exited its position in homebuilder D.R. Horton Inc. and

reduced its holdings in Bank of America Corp. and Verisign

. At the same time, it boosted investments in Sirius XM Holdings Inc., insurance firm Chubb Ltd., and Domino’s Pizza Inc., indicating a preference for industries with reliable cash generation

according to portfolio reviews

Buffett’s investment in Alphabet reflects his recognition of missed opportunities in technology. Back in 2019, he acknowledged not investing in Google sooner,

admitting, "We screwed up"

. The timing of this purchase aligns with Alphabet’s $40 billion investment in AI data centers in Texas

as reported by the company

, further supporting its position as a long-term play in an AI-focused market.

As Buffett prepares to step down as CEO at the end of the year, he has been actively investing cash ahead of the leadership change. Recent actions include a $9.7 billion buyout of Occidental Petroleum Corp.’s petrochemical division and a $1.6 billion investment in UnitedHealth Group Inc.

as announced

. The Alphabet stake,

now ranking as Berkshire’s 10th-largest stock holding

, showcases the company’s shifting strategy under Combs and Weschler, who have taken a more assertive approach to tech investments

according to investment reviews

Alphabet’s shares jumped 5% in premarket trading on Monday

based on market data

, fueled by the announcement and growing enthusiasm for AI. Still, the position makes up only 1.6% of Berkshire’s portfolio

according to portfolio reviews

, illustrating a measured approach in a sector Buffett has traditionally viewed with caution.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- Metaplanet holds 30,823 BTC, aiming for 210,000 by 2027 via preferred shares. - MicroStrategy's market value discounts raise debt concerns despite CEO's confidence. - ETF growth and institutional interest shift Bitcoin's perception as a long-term asset. - Japan's $2T assets drive Metaplanet's Bitcoin-backed fixed-income strategy.

Bitget-RWA•2025/11/18 01:46

Bitcoin News Today: "As ETFs Experience Rapid Growth, Metaplanet Remains Steadfast in the Battle for Bitcoin Leadership"

Bitcoin News Today: Bitcoin’s Plunge Below $96K Sparks Concerns Over a Bear Market Resurgence Similar to 2024

- Bitcoin fell below $96,000, erasing 2025 gains and triggering $44M in liquidations as ETF outflows hit $870M. - Market cap dropped 5.4% to $3.36T, with Ethereum and XRP hitting multi-month lows amid weak demand. - Chain metrics show 815,000 BTC sold by long-term holders, while Bull Score Index collapsed to 20 from 80. - Technical indicators warn of further declines below $93,500, testing 2024 bear market lows if support breaks. - MicroStrategy added $835M BTC despite criticism, but fear/greed index hit 1

Bitget-RWA•2025/11/18 01:30

Bitcoin News Today: Bitcoin ETFs See $870M Outflow as Long-Term Holder Selling Drives Price Near $80k

- Bitcoin’s price nears $80,000 as fear indices hit 16, signaling panic-driven capitulation. - $870M ETF outflows and 815,000 BTC sold by LTHs accelerate downward pressure since October. - Key technical levels breached: 365-day SMA broken, 50-week SMA at risk, bear market risks rising. - Ethereum faces 200-day EMA resistance; whales accumulate ETH despite $3.66B in ETF outflows. - STHs near 12.79% losses, 6-12M holder cost basis at $94,000 may offer temporary support.

Bitget-RWA•2025/11/18 01:30

Bitcoin News Today: Bitcoin ETFs See $870M Outflow as Long-Term Holder Selling Drives Price Near $80k

Bitcoin News Update: Bitcoin ETF Sees $1.5 Billion Withdrawals While Institutional Investors Increase Their Holdings

- BlackRock's IBIT ETF saw $1.5B net outflows over 10 days as investors reassess Bitcoin exposure amid volatility. - Harvard University boosted IBIT holdings to $442.8M, surpassing its combined stake in major tech firms, while diversifying into gold . - Institutional ownership in IBIT rose to 29% QoQ, with UAE entities and sovereign wealth funds among key holders, signaling crypto's growing institutional acceptance. - KuCoin expanded institutional services as ETF outflows highlight market recalibration, wi

Bitget-RWA•2025/11/18 01:30