Berkshire Hathaway has surprised markets by taking a bold swing into Alphabet, investing a hefty $4.3 billion, while winding down its massive Apple position. As of September 30, the firm holds 17.85 million shares of Alphabet — marking a notable shift for a company typically known for its value investing discipline.
Meanwhile, Berkshire pared back its Apple stake dramatically: its share count dropped to 238.2 million from 280 million in the prior quarter, suggesting a sustained exit from what was once its crown jewel. Despite this, Apple remains the single largest equity holding in its portfolio, valued at $60.7 billion.
Berkshire’s Strategic Turn
The move to Alphabet is striking – it becomes Berkshire’s 10th-largest U.S. equity position, a clear sign that it is warming to tech names in a significant way. Historically, Buffett has been hesitant about pure tech, but the company now seems willing to back firms with big moats and strong cash generation.
Who made the call to buy remains unclear. It could have been Buffett, or his lieutenants Todd Combs, Ted Weschler, or even Greg Abel, who steps in as CEO next year. What’s certain is that Berkshire is rebalancing aggressively: it sold $12.5 billion worth of shares in Q3, bought $6.4 billion, and now holds a record $381.7 billion in cash.
Buffett has described Apple more as a consumer business than a tech play — but this new move towards Alphabet hints at a broader evolution in Berkshire’s investment philosophy. Back in 2019, he and Charlie Munger confessed regret for missing out on Google earlier, citing similarities between Google’s ad business and Berkshire’s own insurance operations.
The market responded positively: Alphabet’s stock jumped about 1.7% in after-hours trading, a possible nod to Berkshire’s vote of confidence. As Buffett’s era draws to a close, this strategic pivot indicates Berkshire may be setting a new course — one where technology and innovation play a central role in its next chapter.
