Warren Buffett’s Berkshire Hathaway took the markets in shock this quarter with a bold move into Big Tech, acquiring 17.9 million shares of Google parent Alphabet. The stake, worth roughly $4.9 billion by Friday’s close, gives Berkshire a 0.31% ownership in the search and cloud giant. Alphabet shares quickly reacted, rising 1.7% in extended trading.
This is a notable moment in Buffett’s long investing career. The legendary investor, now 95 and preparing to step down as CEO at year-end, has historically approached technology stocks with caution. But growing confidence in platforms that dominate digital advertising and AI appears to have shifted Berkshire’s stance.
A record-smashing cash pile across major deals
Berkshire ended the quarter with a massive $382 billion cash reserve, prompting renewed pressure to put capital to work. The firm has been gradually doing so, announcing a $9.7 billion acquisition of Occidental Petroleum’s petrochemical business and spending $1.6 billion on a stake in UnitedHealth Group.
Its insurance footprint also expanded. Berkshire added 4.3 million shares of Chubb Ltd., lifting the insurer’s total value in Berkshire’s portfolio to $8.8 billion. Despite these purchases, the company was still a net seller of equities, trimming a total of $6.1 billion in stock holdings during the quarter.
Scaling back on Apple and Bank of America
One of the most closely watched changes involved Apple. Berkshire cut its stake by 15%, though the position remains substantial at $60.7 billion as of September 30. The iPhone maker continues to account for nearly a quarter of Berkshire’s entire equity portfolio.
Berkshire also reduced its exposure to Bank of America, selling 37.2 million shares and lowering its stake to 7.7%. The shift suggests an evolving view on US financials in a higher interest-rate environment.
The firm exited its investment in US homebuilder D.R. Horton, while adding more shares of Lennar Corp., indicating a selective approach to the housing sector.
A new chapter ahead
With Buffett preparing for leadership transition, these moves offer clues to Berkshire’s future investment philosophy. A deeper position in Alphabet signals a stronger conviction in large-scale technology platforms, even as the company maintains disciplined profit-taking elsewhere.
Whether this marks a lasting pivot or a targeted opportunity, Berkshire’s rebalanced portfolio underscores a key message: the next era of value may be found where data, digital services, and infrastructure intersect.
