Warren Buffett’s conglomerate Berkshire Hathaway released its quarterly 13F filing, revealing trades made during the third quarter. Notably, Berkshire sold nearly 42 million Apple shares worth $3.2 billion, reducing their stake from nearly half of the portfolio to 21%. However, this wasn’t the only significant change.
Berkshire added almost 18 million Alphabet (GOOG) shares, valued at $4.3 billion, giving it a small but notable position in the portfolio. Alphabet’s low-cost business model with strong gross and operating margins makes it attractive to Buffett. The company has a dominant lead in search services through Google, providing an economic moat that’s difficult for competitors to overcome.
Alphabet’s stock trades at a price-to-earnings ratio of 28, which could be seen as a good value. However, new investors should note that the current P/E is above the three- and five-year averages, making it less ideal to buy now. Buffett himself has expressed regret over not buying Alphabet earlier due to its strong prospects at lower prices.
Despite Apple remaining Berkshire’s largest holding, Alphabet fits well within the Buffett model of high-margin, low-cost businesses with a dominant market position. This could be an attractive option for investors looking for a solid and reliable tech stock.
Source: https://www.fool.com/investing/2025/11/21/warren-buffett-sells-32-billion-of-apple-stock-and