Warren Buffett’s recent investment in Alphabet (GOOGL) may seem like a surprise to investors, but it actually reveals his confidence in Apple’s future growth. Unlike traditional tech stocks, Berkshire Hathaway bought only one new stock in the third quarter, and it was Alphabet.
Buffett has historically been cautious about investing in tech companies, owning stakes in Apple (AAPL) and Amazon, but this latest move suggests he sees potential in Alphabet. The investment is a significant departure from his classic stance on avoiding tech stocks.
Berkshire Hathaway sold almost 41.8 million shares of Apple last quarter, reducing its stake to just over 21% of the portfolio. However, Buffett has consistently praised Apple and its leader Tim Cook, and he’s committed to holding onto the stock. The recent sale may be due to the high valuation of Apple stock, but it doesn’t necessarily mean Buffett is losing confidence.
The latest deal between Apple and Alphabet (GOOGL) could be a significant factor in Berkshire’s investment decision. Apple agreed to pay $1 billion annually for the use of Alphabet’s large language model (LLM) to power its Siri voice assistant. This partnership could help Apple catch up with rival AI assistants, and it’s a vote of confidence in both Alphabet and Apple.
Buffett has expressed regret over not investing in Alphabet earlier, but this new deal may have changed his mind. The investment in Alphabet is a smart move for Berkshire Hathaway, as it shows Buffett is looking to the future of tech companies like Apple.
Source: https://www.fool.com/investing/2025/11/29/is-this-the-undiscussed-reason-buffett-just-bought