Berkshire Hathaway’s $4.9 Billion Alphabet Bet: Why Warren Buffett Didn’t Make the Call
- Who Really Bought Alphabet for Berkshire Hathaway?
- Buffett’s Apple Paradox: Cutting While It’s Still #1
- The Bank of America and Verisign Trim
- Buffett’s Thanksgiving Letter: Passing the Torch
- Japan and Hong Kong: The Quiet Winners
- FAQ: The Berkshire Shake-Up
In a surprising move, Berkshire Hathaway scooped up 17.8 million shares of Alphabet (Google’s parent company) worth $4.9 billion in Q3 2025—but the mastermind behind the trade wasn’t Warren Buffett. The investment marks a stark departure from Buffett’s traditional avoidance of tech stocks (outside Apple) and has sparked speculation about who’s pulling the strings at Omaha. Meanwhile, Berkshire continued trimming its Apple stake by 15%, now valued at $64.9 billion. Here’s the inside scoop on the portfolio shuffle, Greg Abel’s rising influence, and Buffett’s cryptic Thanksgiving letter.
Who Really Bought Alphabet for Berkshire Hathaway?
Berkshire’s latest SEC filing reveals a blockbuster $4.9 billion position in Alphabet—the firm’s single largest dollar-weighted addition last quarter. But given Buffett’s famous reluctance to invest in tech (he once called Google “a miracle” he failed to capitalize on), analysts suspect the trade came from either:
- Greg Abel (Buffett’s CEO successor): Not burdened by Buffett’s past regrets about missing Google’s rise. Abel now oversees most investment decisions.
- Ted Weschler/Todd Combs (Portfolio managers): Known for tech-friendly bets like Amazon and Snowflake.
Alphabet shares jumped 3.5% post-announcement. The timing raised eyebrows—the filing dropped right after market close, a tactic Berkshire often uses to minimize frenzy.
Buffett’s Apple Paradox: Cutting While It’s Still #1
Berkshire sold $10.6 billion worth of Apple stock (15% of its position) last quarter, leaving 238 million shares. That’s a 74% reduction since 2023. Yet Apple remains Berkshire’s crown jewel at 21% of its portfolio ($64.9 billion). Why the mixed signals?
says BTCC analyst Mark Chen.
The Bank of America and Verisign Trim
Other notable cuts:
| Stock | Reduction | Remaining Value |
|---|---|---|
| Bank of America | 6.1% ($1.9B) | $29.9B |
| Verisign | Ongoing since August | Undisclosed |
Source: SEC FORM 13F, Q3 2025
Buffett’s Thanksgiving Letter: Passing the Torch
The 94-year-old’s annual letter doubled in length this year (7+ pages), mixing folksy wisdom with succession clarity:
- Greg Abel’s Role: Will write next year’s shareholder letter and host the annual meeting. Buffett joked he’ll just “sit with the board and maybe nap.”
- Family Foundations: Increased donations by 17% ($1.3B total) to trusts run by his three children.
- Oddball Anecdote: Recalled fingerprinting nuns during a childhood hospital stay “in case one turned evil.”
Japan and Hong Kong: The Quiet Winners
While Alphabet stole headlines, Berkshire’s overseas holdings thrived:
- Itochu (Japan): Position up 12% YTD
- Mitsubishi (Japan): Gained 9% since August
FAQ: The Berkshire Shake-Up
Why did Berkshire buy Alphabet now?
Likely a valuation play—Alphabet was up 51% YTD but still trades at a 22 P/E ratio, below its 5-year average.
Is Buffett retiring?
Not officially, but his delegation to Abel (who now handles all investor communications) suggests a soft exit.
Will Berkshire keep selling Apple?
Unclear, but at 21% of the portfolio, further trimming seems probable for diversification.
