(C) Moneycontrol
New York/Omaha - Berkshire Hathaway, led by legendary investor Warren Buffett (95), has captured Wall Street's attention by revealing a significant new investment in Alphabet, the parent company of Google. According to a quarterly holdings report (Form 13F) filed with the U.S. Securities and Exchange Commission (SEC) on November 14 (local time), Berkshire reported holding approximately $4.33 billion (around 6.3 trillion Korean won) worth of Alphabet stock as of the end of September. This investment now ranks as the tenth-largest position in Berkshire's publicly traded equity portfolio.
The acquisition of the Alphabet stake is seen as a notable departure from Buffett's long-standing 'value investing' philosophy, particularly his traditional reluctance toward large technology companies, with the exception of Apple. Both Buffett and the late Charlie Munger, Berkshire's Vice Chairman who passed away in 2023, have publicly expressed regret over missing the opportunity to invest in Google earlier. Munger once stated at the 2017 annual shareholders' meeting that "the worst mistake we made in the tech sector was not recognizing Google," a sentiment Buffett echoed, admitting they had "blown it."
Wall Street interprets the Alphabet investment as an attempt to rectify past regrets and signal confidence in the company's future growth drivers, including Artificial Intelligence (AI) and cloud computing. The move is particularly striking as Alphabet's stock has surged over 40% this year amid the AI boom. The decision by the typically cautious Berkshire to make a substantial purchase at this time suggests a belief that the stock is reasonably valued. This vote of confidence from one of the world's most respected investors could potentially boost investor faith in the broader AI-related tech sector.
In a related move, Berkshire also reported a reduction of approximately 15% in its Apple holdings during the third quarter. Despite the sale, the remaining Apple stake is still valued at $60.7 billion, maintaining its position as the overwhelming largest holding in Berkshire's publicly traded portfolio.
It remains unclear whether Buffett himself initiated the Alphabet purchase or if it was driven by Berkshire's portfolio managers, Todd Combs or Ted Weschler. The latter two are known to have spearheaded Berkshire's acquisition of Amazon stock in 2019, making it highly probable they led the decision for the Alphabet investment as well.
This disclosure is one of the last quarterly reports before Buffett's planned retirement at the end of 2025. Following his departure, Berkshire will be led by Vice Chairman Greg Abel, who has been designated as his successor. The strategic bet on Alphabet, made just ahead of Buffett's retirement, is viewed as a significant indicator that Berkshire's next generation of investment leadership is exploring expansion into the technology sector.
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