- BRK-B
- NVDA
- GOOG
Warren Buffett, the leader of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) for 60 years before his recent retirement, famously avoided technology stocks for much of his investing career. He instead showed a preference for what you may consider to be boring companies — consumer staples and insurance, in particular — that didn’t blow anyone one away, but still had reliable cash flow, loyal customers, and competitive advantages.
So when Berkshire bought 17.86 million shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) in the third quarter of 2025 — the final year of the Oracle of Omaha’s leadership at Berkshire — it was a significant endorsement of Google‘s parent company.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia.Continue »
And his successor, Greg Abel, has since doubled down on that technology investment.
Abel purchased an additional 36.4 million shares during the first quarter of 2026 and then committed another $10 billion through a private placement to help finance Alphabet’s expansion of artificial intelligence (AI) infrastructure. Berkshire subsequently increased its position again in the second quarter.
Alphabet has quickly become one of Berkshire’s largest investments. And I believe there’s plenty of reason for individual investors to follow Buffett’s lead.
Alphabet has everything an AI investor should want
Alphabet is best known for its dominant internet search engine, its popular Chrome browser, and the YouTube video platform, all of which give the company an enormous audience and a powerful advertising business. That established business provides a competitive advantage as Alphabet invests aggressively in artificial intelligence.
Google’s Gemini AI models integrate into Search, Workspace, and other products. Rather than surrendering its dominant search position to emerging AI competitors, Google is incorporating AI directly into the services consumers already use.
Google Cloud is the third-largest cloud computing company in the world by market share (behind only Amazon Web Services and Microsoft Azure), and provides businesses with computing infrastructure and AI tools to develop and deploy their own applications.
Alphabet also designs its own Tensor Processing Units (TPUs), specialized chips that can train and run sophisticated AI models. Not only does that give Alphabet another revenue stream, but it also provides Google with greater control over its computing infrastructure and reduces its dependence on outside semiconductor suppliers.
