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Warren Buffett's Berkshire Takes $4.9 Billion Stake in Alphabet

MarketDash Editorial Team
20 days ago
Berkshire Hathaway made Alphabet its only new investment in Q3, purchasing nearly 18 million shares and sending the stock to all-time highs as investors digest the Oracle of Omaha's rare tech bet.

When Warren Buffett buys something, people notice. When Warren Buffett buys a tech stock, people really notice. Shares of Alphabet Inc. (GOOG) (GOOGL) jumped Monday after regulatory filings revealed that Berkshire Hathaway took a fresh stake in Google's parent company during the third quarter.

The Details Behind Buffett's Big Bet

Berkshire purchased 17.85 million shares of Alphabet in Q3, according to an SEC filing released Friday. Here's what makes this interesting: it was Berkshire's only new investment during the entire quarter. Not one of several positions. The only one.

That $4.9 billion stake now ranks as Berkshire's 10th largest equity investment. For a firm that has famously shied away from technology investments for decades, this is noteworthy. Berkshire has previously defended its Apple (AAPL) holdings by characterizing them as a consumer-products play rather than a tech bet, according to Reuters. But Google? That's harder to spin as anything but a technology investment.

The market clearly approved of Buffett's endorsement. Alphabet stock touched new all-time highs in early Monday trading before settling back slightly, still up 4.3% at $288.91.

What the Charts Are Saying

The technical picture for Alphabet looks robust. The stock is trading roughly 12.9% above its 50-day moving average of $257.83 and a substantial 46.8% above its 200-day moving average of $198.27. Those kinds of numbers suggest sustained momentum and strong investor conviction, not just a short-term pop.

The Relative Strength Index sits at 55.82, which places the stock in neutral territory. Translation: there's room to run higher without triggering overbought concerns. Support appears solid at $276.86, just below Monday's previous close of $276.98, while immediate resistance looms at $291.93.

A Changing of the Guard

The timing adds another layer of intrigue. Buffett is scheduled to step down as CEO of Berkshire Hathaway at year's end, making this one of his final major investment decisions in the top role. Whether this signals a broader strategic shift for Berkshire or simply reflects Buffett's view that Alphabet offers compelling value at current levels remains to be seen. Either way, the Oracle of Omaha is placing a nearly $5 billion bet that Google still has plenty of room to grow.

Back to News

Warren Buffett's Berkshire Takes $4.9 Billion Stake in Alphabet

MarketDash Editorial Team
20 days ago
Berkshire Hathaway made Alphabet its only new investment in Q3, purchasing nearly 18 million shares and sending the stock to all-time highs as investors digest the Oracle of Omaha's rare tech bet.

When Warren Buffett buys something, people notice. When Warren Buffett buys a tech stock, people really notice. Shares of Alphabet Inc. (GOOG) (GOOGL) jumped Monday after regulatory filings revealed that Berkshire Hathaway took a fresh stake in Google's parent company during the third quarter.

The Details Behind Buffett's Big Bet

Berkshire purchased 17.85 million shares of Alphabet in Q3, according to an SEC filing released Friday. Here's what makes this interesting: it was Berkshire's only new investment during the entire quarter. Not one of several positions. The only one.

That $4.9 billion stake now ranks as Berkshire's 10th largest equity investment. For a firm that has famously shied away from technology investments for decades, this is noteworthy. Berkshire has previously defended its Apple (AAPL) holdings by characterizing them as a consumer-products play rather than a tech bet, according to Reuters. But Google? That's harder to spin as anything but a technology investment.

The market clearly approved of Buffett's endorsement. Alphabet stock touched new all-time highs in early Monday trading before settling back slightly, still up 4.3% at $288.91.

What the Charts Are Saying

The technical picture for Alphabet looks robust. The stock is trading roughly 12.9% above its 50-day moving average of $257.83 and a substantial 46.8% above its 200-day moving average of $198.27. Those kinds of numbers suggest sustained momentum and strong investor conviction, not just a short-term pop.

The Relative Strength Index sits at 55.82, which places the stock in neutral territory. Translation: there's room to run higher without triggering overbought concerns. Support appears solid at $276.86, just below Monday's previous close of $276.98, while immediate resistance looms at $291.93.

A Changing of the Guard

The timing adds another layer of intrigue. Buffett is scheduled to step down as CEO of Berkshire Hathaway at year's end, making this one of his final major investment decisions in the top role. Whether this signals a broader strategic shift for Berkshire or simply reflects Buffett's view that Alphabet offers compelling value at current levels remains to be seen. Either way, the Oracle of Omaha is placing a nearly $5 billion bet that Google still has plenty of room to grow.