Warren Buffett revealed in a CNBC interview that he personally initiated Berkshire Hathaway's significant investment in Alphabet, clarifying that the decision was not made by Berkshire's new CEO, Greg Abel. Buffett stated, 'I initiated it,' and emphasized the collaborative relationship with Abel, noting, 'He is the decider,' but both approve each other's actions [1].
Berkshire Hathaway first disclosed its stake in Alphabet during the third quarter of 2025 and has since increased its holdings. Earlier in 2026, Berkshire participated in a $10 billion private placement by Alphabet, aimed at funding the company's artificial intelligence infrastructure [1]. Buffett highlighted the importance of investing in businesses capable of earning high returns on capital over extended periods, but also remarked that Alphabet is not among his top favorite holdings, saying, 'I would say that I don't like it as well as at least four or five other businesses that we own' [1].
Buffett discussed the competitive landscape in artificial intelligence, pointing out the 'enormous capital commitments' required, with Alphabet and its rivals 'laying out hundreds of billions' to compete in this space. He contrasted this with earlier eras, stating, 'That's the game they're playing now. They weren't playing that game with computer software' [1].
Additionally, Buffett reaffirmed his confidence in Apple, Berkshire's largest equity holding, even after the announcement of Tim Cook stepping down as CEO. He expressed his continued optimism about Apple's future, noting, 'If you're Apple, you've got very very smart people all over the world shooting and trying to figure out how to make sure that that Apple's future, the future is as bright as the past' [1].
CONCLUSION
Warren Buffett's confirmation of his leadership in Berkshire Hathaway's investment in Alphabet underscores the conglomerate's strategic focus on technology and artificial intelligence. The sizable capital commitments in AI and Buffett's nuanced view of Alphabet's position within Berkshire's portfolio highlight both the opportunities and challenges ahead. Market participants are likely to view Berkshire's moves as a strong endorsement of Alphabet and continued confidence in Apple.