Berkshire Hathaway chairman Warren Buffett confirmed he was the primary decision-maker behind the conglomerate’s recent investment in Alphabet, despite his ongoing leadership transition. Buffett, who has transitioned day-to-day operations to CEO Greg Abel, stated he initiated the position, which has grown into one of Berkshire’s significant technology holdings.
Buffett’s Role in the Alphabet Investment
Warren Buffett clarified his involvement in the decision to add Alphabet to Berkshire Hathaway’s portfolio during a recent interview with CNBC. While Greg Abel assumed the role of CEO at the start of this year, Buffett emphasized that he remains active in major capital allocation decisions.
"I initiated it," Buffett told CNBC’s Becky Quick. He noted that while he and Abel maintain constant communication regarding the company’s strategy, the collaborative nature of their relationship ensures alignment. "I am not doing anything that he doesn’t approve of. He’s not doing anything I don’t approve of. We talk all the time, but he is the decider," Buffett said.
Berkshire Hathaway first disclosed its stake in the parent company of Google during the third quarter of 2025. Since that initial entry, the conglomerate has expanded its position and participated in a $10 billion private placement intended to support Alphabet’s artificial intelligence infrastructure.
Evolution of Buffett’s Tech Investment Strategy
The move into Alphabet marks a notable shift for the 95-year-old investor, who has historically avoided technology stocks. Buffett previously expressed regret for missing the opportunity to invest in Google earlier, despite observing the company’s advertising success through Geico, a long-term Berkshire subsidiary. In 2018, Buffett admitted he understood the economics of Google’s business but lacked the conviction that it would maintain its dominance in the rapidly evolving technology sector.
Reflecting on his current approach, Buffett highlighted the importance of identifying businesses capable of generating high returns on capital over extended periods. However, he remains cautious about the current "arms race" in artificial intelligence. He warned that the immense capital expenditures required to compete in the AI space represent a significant departure from the lower-cost software models of the past. "The real question with Google and all of its competitors now, because they’re all laying out hundreds of billions, and that’s real money," Buffett said. "That’s the game they’re playing now."
Perspectives on Apple and Portfolio Priorities
Despite the new focus on Alphabet, Apple remains Berkshire Hathaway’s largest equity holding. Buffett continues to speak highly of the iPhone maker, even following leadership changes at the tech giant. "I know more about Apple than I knew many years ago," Buffett said, noting his confidence in the current leadership team to navigate future challenges.
However, Buffett indicated that while Apple is a substantial part of his portfolio, it is not necessarily his favorite business among those Berkshire owns. He suggested there are at least four or five other companies within the conglomerate’s diverse portfolio that he views more favorably in terms of long-term business quality.
Key Takeaways
- Decision Authority: Warren Buffett confirmed he directed the investment in Alphabet, though he maintains a collaborative relationship with CEO Greg Abel.
- Investment Timeline: Berkshire Hathaway’s position in Alphabet was first disclosed in Q3 2025 and has since expanded.
- Market Caution: Buffett highlighted the high capital costs associated with the current AI sector as a primary risk factor for Alphabet and its competitors.
- Portfolio Standing: Apple remains Berkshire’s largest equity holding, though Buffett ranks it behind several other businesses he owns in terms of long-term preference.
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