Between its Class A and Class C shares, Alphabet makes up 10% of the conglomerate’s total holdings.
Abel and Buffett must have confidence that the AI stock will generate substantial returns on its huge capital expenditures.
Warren Buffett, who recently stepped down as chairman of Berkshire Hathaway, doesn't have a history of owning technology businesses. While the conglomerate's investment in Apple can be viewed as a bet on a strong consumer brand, the Omaha company's sizable bet on Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) signals an evolution.
The legendary investor and his successor, Greg Abel, are extremely bullish on this monster artificial intelligence (AI) stock.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: The Motley Fool.
It came as a surprise when it was revealed in July that Warren Buffett was the one who initiated Berkshire Hathaway's first purchase of Alphabet shares in the third quarter of 2025. He clearly understands how dominant a business the internet giant is, with widely adopted and irreplaceable platforms, network effects, first-rate technical expertise, and sizable profits.
Berkshire Hathaway added to its stake in 2026. And as of Sept. 25, Alphabet makes up 10% of its entire portfolio. Between Class A and Class C shares, this business is its third-largest holding.
Abel and Buffett are clearly bullish on the leading AI enterprise, which currently trades at a reasonable 22.8 times consensus earnings estimates. They are showcasing their confidence in Alphabet at a time when it has raised tremendous amounts of capital to invest aggressively in the development of data centers.
The two executives must have a firm belief that the company will generate satisfactory returns on its massive capital expenditures. Time will tell if this is the right call.
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 28, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.