Warren Buffett said he personally initiated Berkshire Hathaway's recent, sizeable investment in Alphabet — not new CEO Greg Abel. The 95-year-old investor explained his role and the reasoning behind the move in an interview with CNBC, and described where Alphabet sits within Berkshire's portfolio.
Decision-making and internal alignment
Buffett added that although he started the transaction, he and Greg Abel are fully aligned: they mutually approve each other's moves and consult continuously, while the ultimate decision-maker role rests with the CEO.
Berkshire's involvement in Alphabet
Berkshire first disclosed its stake in Alphabet in the third quarter of 2025, and has increased that holding since. The conglomerate also participated in Alphabet's $10 billion private funding round, which the company is using to finance development of its artificial intelligence infrastructure.
Buffett emphasized that Berkshire looks for companies that can deliver high returns on capital over the long term.
AI's capital demands and associated risks
Buffett identified the enormous capital requirements of the AI race as a risk. He said Google and its competitors are currently investing hundreds of billions of dollars in AI-related spending, a real financial outlay that requires a different operating model than earlier software-market investments.
Alphabet's weight in the portfolio and Apple as a favorite
Although Alphabet represents a significant weight in Berkshire's portfolio, Buffett said it is not among his top favorites — he prefers at least four or five other holdings to it. He also confirmed that Apple, which constitutes Berkshire's largest equity position, remains one of the conglomerate's favorites even after Tim Cook announced his departure as CEO.
This article does not constitute investment advice or a recommendation.
