For decades, Warren Buffett treated tech stocks like they were written in a language he couldn’t read. “Not in my circle of competence,” he’d say, which is investor-speak for “I don’t get it, so I’m not touching it.”
Then came Apple in 2016, which he bought when it was cheap. Fair enough. But Google? That’s a whole different story—and it signals something major might be shifting at Berkshire Hathaway.
The Big Move
In Q3 2025, Buffett’s Berkshire Hathaway dropped $4.3 billion on Alphabet (Google’s parent company), buying 17.8 million shares. This wasn’t some tiny experimental position. It’s now about 1.6% of Berkshire’s $267 billion portfolio. For context, that’s the kind of move that makes markets twitch.
The market definitely noticed. Alphabet stock jumped 5% the first full trading day after the news hit. Investors were basically saying: “If Buffett thinks it’s worth buying, maybe we should too.”
Why Now? Why Google?
Here’s the thing: Alphabet actually fits Buffett’s playbook better than you’d think. When he bought in Q3, the stock was trading at around 19 times earnings—which for an AI powerhouse in the Magnificent 7 is basically a bargain. Compare that to other mega-cap tech stocks, and Google looks like it’s on sale.
The company has all the hallmarks of a Buffett investment: it’s profitable, it dominates its market (search is still king), and it’s got a moat wider than most. Plus, Google’s actually crushing it in AI. Their Gemini chatbot is getting rave reviews, they’re building competitive chips, and they just dodged antitrust bullets that could’ve been devastating.
The Real Story
But here’s what’s really interesting: this might signal a changing of the guard. Greg Abel is taking over as CEO in January, and some analysts wonder if this move reflects new leadership’s willingness to venture into “wonderful” tech companies at reasonable prices. Buffett’s been cautious about tech for years, but maybe his successor sees things differently.
Since Q3 started, Alphabet has rocketed 63% to around $290 per share. If Buffett bought early in the quarter when valuations were lower, he’s already sitting on a solid gain. And it’s up 53% year-to-date overall.
The Bottom Line
This isn’t Buffett suddenly becoming a tech bro. It’s Buffett recognizing that Google is a genuinely wonderful company trading at a fair price—which is literally his entire investment philosophy. The fact that it took him this long to pull the trigger on a major tech position says something about how cautious he’s been.
Whether this opens the door to more tech investments at Berkshire remains to be seen. But one thing’s clear: when the world’s greatest value investor finally decides a stock is worth buying, it’s worth paying attention.
