Under the guidance of CEO ماده Greg Abel, Berkshire Hathaway has expanded its portfolio into the technology sector. A recent 13F filing disclosed that the conglomerate holds 68,462,015 Class A shares and 17,944,778 Class C shares of Alphabet (NASDAQ: GOOGL and GOOG) as of March 31, with a market value of $30.7 billion. Combined, these stakes constitute Berkshire’s fourth‑largest equity position.
On June 1, the company announced a $10 billion private placement into the “Magnificent Seven” group of stocks. This investment tripled Berkshire’s stake in Alphabet to roughly $41 billion, eclipsing its holding in Coca‑Cola while remaining below its positions in Apple and American Express.
1. Alphabet’s Exceptional Business Model
Alphabet stands out among Berkshire’s high‑quality holdings as a leading internet and technology company. Its financial-Aggressiveness, marked by a 22% revenue increase to $110 billion in Q1, and a 30% rise in operating income, culminated in a 36% operating margin.
Alphabet consistently generates substantial free cash flow—$73 billion in 2025—and deploys surplus capital through modest dividends and sizable share buybacks, reinforcing its long‑term sustainability.
The company’s enduring competitive moat is largely driven by network effects, exemplified by Google Search and YouTube, which bolster user engagement and data advantages.
2. Valuation Remains Reasonable
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price,” Buffett famously wrote in a 1989 shareholder letter. Berkshire’s decision to acquire Alphabet aligns with that philosophy, with a 12‑month average P/E ratio of 26.6—just slightly above the S&P 500’s current 25—justifying the modest premium for a company that delivers consistent growth.
3. Berkshire’s Confidence in Artificial Intelligence
Historically, Berkshire has preferred investments that do not rely heavily on technology; Apple remains a notable exception. Alphabet, as an integrated internet and AI platform, offers a distinct suite of services—ranging from cloud infrastructure to advertising and consumer‑facing apps—capable of monetizing the company’s projected $180‑$190 billion capital expenditure for 2026.
Given Alphabet’s existing infrastructure, Berkshire appears well positioned to capitalize on the AI wave, and its commitment to holding shares long‑term signals confidence in the company’s future prospects.