Warren Buffett's Berkshire Hathaway Owns $41 Billion of Alphabet Stock: Here Are 3 Possible Reasons Why

Under the enactment of caller CEO Greg Abel, Berkshire Hathaway is making a splash successful the exertion space. Based connected its astir caller 13F filing, the conglomerate owned 68,462,015 Class A shares and 17,944,778 Class C shares of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) arsenic of March 31, which contiguous is valued astatine $30.7 billion. These 2 positions combined marque up Berkshire's fourth-largest holding successful a azygous company's equity.

On June 1, however, the Omaha endeavor announced a $10 cardinal backstage placement into the "Magnificent Seven" stock. With a full presumption of astir $41 cardinal successful Alphabet, this is present a bigger presumption than Coca-Cola. But it's inactive smaller than Apple and American Express.

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Investors mightiness presumption these decisions arsenic uncharacteristic of the strategy Berkshire and Warren Buffett person agelong operated with. This stake makes sense, though.

Here are 3 imaginable reasons wherefore the conglomerate is truthful bullish connected Alphabet.

1. Alphabet is an exceptional concern

Berkshire's portfolio consists of high-quality names. Alphabet mightiness beryllium the champion concern among each the holdings.

It operates from a presumption of fiscal strength. Revenue roseate 22% twelvemonth implicit twelvemonth to $110 cardinal successful the archetypal 4th (ended March 31), an unbelievable summation for a institution of this size. Operating income climbed 30% during that period, resulting successful a superb 36% operating margin.

Alphabet is simply a currency machine. In 2025, it raked successful $73 cardinal successful escaped currency flow. Management uses the windfall to wage a tiny dividend, with superior besides directed toward sizable stock buybacks.

Buffett coined the operation "economic moat." Alphabet's moat has proven to beryllium durable implicit time, protecting its competitory position. The astir notable contributor is simply a web effect. This shows up successful the crown jewel Google Search segment. As a two-sided platform, YouTube besides benefits from the aforesaid attribute.

2. The valuation isn't excessive

"It's acold amended to bargain a fantastic institution astatine a just terms than a just institution astatine a fantastic price," Buffett wrote successful Berkshire's 1989 shareholder letter. These words, drafted astir 4 decades ago, are inactive being applied by the conglomerate today. It's astir arsenic if the squad astatine Berkshire work these words earlier it made the purchases for Alphabet.