Warren Buffett expressed regret over not investing in Alphabet earlier, but new CEO Greg Abel is ensuring Berkshire Hathaway won’t miss out on its future growth.
Abel has aggressively built up Berkshire’s stake in Alphabet through multiple substantial purchases, signaling strong confidence in the tech giant and validating the long-term potential of artificial intelligence investments.
This strategic shift under Abel underscores a disciplined belief in Alphabet’s continued outperformance, contrasting Buffett’s prior hesitation and positioning Berkshire for future gains in the evolving tech landscape.
Even legendary investor Warren Buffett has confessed to making mistakes. One of his most notable regrets involves Alphabet (GOOG, GOOGL), a tech giant Buffett largely avoided for years. In an interview, Buffett admitted his error in not investing in Alphabet sooner.
However, under the leadership of new CEO Greg Abel, Berkshire Hathaway (BRKA, BRKB) is ensuring it won't repeat past oversights when it comes to the technology sector, particularly with Alphabet. Abel's recent maneuvers signal a strong belief in the company's future growth.
Image source: The Motley Fool.
Berkshire's Amplified Investment in Alphabet
Berkshire Hathaway initiated its position in Alphabet during the third quarter of 2025, acquiring approximately 18 million shares. Demonstrating a proactive stance, CEO Greg Abel significantly expanded this holding in the first quarter of 2026 by adding another 40 million shares. Further cementing Berkshire's commitment, Abel executed a $10 billion private placement deal in June, evenly split between Class A and Class C shares.
While Berkshire Hathaway is famously reserved about its investment rationales, these substantial moves under Abel's guidance offer profound insights. They not only highlight confidence in Alphabet but also serve as a broader endorsement of investing in artificial intelligence (AI) technologies.
$1.1TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.
Day's Range
$506.70 - $513.03
52wk Range
$455.19 - $516.85
Volume
3.9M
Avg Vol
5M
Gross Margin
23.70%
Validating the AI Investment Thesis
The year 2026 has seen a more tempered enthusiasm for AI investments, largely due to escalating concerns over the massive capital expenditures required. Alphabet, for instance, projects its capital expenditures to hover between $195 billion and $205 billion this year. The prevailing fear is that these substantial investments in AI might take longer than anticipated to yield returns, or worse, fail to materialize into profits.
However, Berkshire Hathaway's significant stake in Alphabet offers powerful validation. It underscores that AI is far more than a fleeting trend. According to Statista's projections, the global AI market, valued at over $617 billion in 2026, is poised for explosive growth, expected to reach $1.2 trillion by 2032.
Furthermore, this investment is a direct affirmation of Alphabet as a company. While Buffett previously acknowledged missing an early opportunity, Berkshire's investment philosophy is rooted in disciplined, long-term commitment rather than chasing missed chances. Their current investment in Alphabet signifies a genuine conviction that the company's value will appreciate substantially over time.
While the market might be experiencing 'Magnificent Seven' investing fatigue, Alphabet's potential for continued market outperformance remains strong, backed by Berkshire's vote of confidence. Over the last five years, Alphabet stock has surged approximately 164%, significantly outpacing the S&P 500's climb of around 70% in the same period, suggesting its trajectory for meaningful returns could persist under Abel's forward-looking strategy.
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