Berkshire Hathaway Invests $4.3B in Alphabet, Reduces Apple Stake

Berkshire Hathaway Makes Strategic Move into Alphabet

In a significant strategic shift, Berkshire Hathaway, the investment giant led by Warren Buffett, has initiated a $4.3 billion investment in Alphabet. This marks the company's first substantial foray into a major tech platform primarily driven by AI and cloud computing advancements. According to a recent SEC filing, the acquisition comprises 17.8 million shares of Alphabet (GOOG).

Reduction in Apple Holdings

Alongside this new investment, Berkshire Hathaway has reduced its Apple holdings by approximately 15%. Despite this reduction, Apple remains a dominant component of Berkshire's portfolio. Additionally, the firm has decreased its stakes in Bank of America, Verisign, DaVita Healthcare Partners, and Nucor.

Shift in Investment Strategy

Berkshire's entry into Alphabet reflects a departure from its historical hesitance towards tech investments due to the rapid pace of technological evolution. Analysts credit this move to Todd Combs and Ted Weschler, who previously encouraged Berkshire's investment in Apple. Warren Buffett, who has expressed regret over not investing in Google and Amazon earlier, plans to step down as CEO by the end of 2025, with Greg Abel set to succeed him.