Warren Buffett Reveals He Initiated Berkshire Hathaway's Major Alphabet Investment

At age 95 and over six months after stepping down as CEO of Berkshire Hathaway, Warren Buffett clarified in a CNBC interview that he personally initiated the conglomerate's significant investment in Alphabet shares, not his successor Greg Abel. Buffett emphasized that the decision was made in full coordination with Abel. Berkshire Hathaway first disclosed its Alphabet stake in the third quarter of 2025 and has since increased its position. Earlier this year, the company also participated in a $10 billion private bond investment in Alphabet to support the expansion of the search giant's artificial intelligence infrastructure.

Buffett explained that his investments focus on companies capable of generating high returns on equity over the long term. While Alphabet benefits from substantial competitive advantages, he noted it is not among his top favorites in Berkshire's portfolio, citing at least four or five other companies he prefers more. He also highlighted the transformative challenge posed by the AI era, requiring massive investments in computing infrastructure, data centers, and chips. "The real question for Google and its competitors is how much capital will be needed to win this race," Buffett said, suggesting these huge AI investments could impact future tech company returns.

Alongside the new Alphabet investment, Buffett reaffirmed his confidence in Apple, which remains Berkshire's largest holding. Despite upcoming CEO changes at Apple, he believes the company retains quality personnel and the ability to maintain its market position over time.