Berkshire Triples Alphabet Stake to 6.7% of $332 Billion Portfolio
Updated
Updated · The Motley Fool · May 30
Berkshire Triples Alphabet Stake to 6.7% of $332 Billion Portfolio
3 articles · Updated · The Motley Fool · May 30
Alphabet became Berkshire Hathaway’s fifth-largest holding after the conglomerate more than tripled its stake in the first quarter, a major early portfolio move under new CEO Greg Abel.
The bet centers on Alphabet’s AI push and durable franchises: Google still controls roughly 85% to 90% of search, while YouTube, Google Cloud and Waymo add further growth and moat potential.
That conviction comes despite heavier spending, with Alphabet lifting 2026 capital-expenditure guidance to $180 billion-$190 billion and Wall Street projecting free cash flow near $26 billion, down from more than $73 billion last year.
Other billionaire investors moved the other way: Bill Ackman nearly exited Alphabet and Stanley Druckenmiller sold out, with Ackman saying he remained bullish long term but shifted capital into Microsoft.
The purchase also lands as Alphabet faces U.S. antitrust pressure after a federal judge backed the Justice Department’s monopoly case, a risk Berkshire may see as outweighed by the company’s entrenched market position.
With AI spending soaring, will Alphabet's massive capital burn create an unbreakable moat or simply destroy shareholder value for years?
Why is Berkshire buying Alphabet aggressively while other top hedge funds are selling their entire positions in the tech giant?
Berkshire Hathaway’s $10 Billion Bet: How Alphabet Became the Cornerstone of a Tech-Focused Portfolio Overhaul in 2026
Overview
In June 2026, Berkshire Hathaway made a bold move by investing $10 billion privately in Alphabet, signaling a major shift from Warren Buffett’s traditional investment style. This deepened commitment comes as Alphabet launches an $80 billion equity raise to fund its ambitious expansion in artificial intelligence. Berkshire’s investment is a cornerstone of this effort, reflecting strong confidence in the long-term demand for AI technologies. The capital infusion is critical for Alphabet, enabling it to ramp up AI spending and maintain its competitive edge among other tech giants, marking a new era for both companies.