Berkshire's Alphabet Stake Was Buffett's Personal Decision

Who Really Made the Call

Warren Buffett is 95 years old. He stepped down as Berkshire Hathaway's CEO in May of last year, and Greg Abel took over at the start of 2026. But when it comes to one big bet on Alphabet (the company that owns Google), the old boss still pulled the trigger.

Buffett told CNBC's Becky Quick that he personally launched Berkshire's investment in Alphabet. "I initiated it," he said.

The initial public disclosure of Berkshire's Alphabet holdings occurred in its third-quarter 2025 filing, which came before Abel officially became CEO. Buffett also revealed that Berkshire participated in a $10 billion private investment deal with Alphabet earlier this year.

"I am not doing anything that he doesn't approve of. He's not doing anything I don't approve of. We talk all the time, but he is the decider," Buffett said.

The Mistake That Got Fixed

Buffett acknowledged that he "made a mistake" by not investing in Alphabet sooner.

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But even with that regret corrected, Buffett isn't head over heels for the company. "I would say that I don't like it as well as at least four or five other businesses that we own," he said.

The AI Money Problem

The real question, according to Buffett, is what comes next for Google and every other big tech company. He pointed out that Alphabet and its rivals are dumping hundreds of billions of dollars into artificial intelligence. "That's the game they're playing now. They weren't playing that game with computer software," he said.

He did not answer the question, but he put it front and center for investors.

Meanwhile, he also touched on Berkshire's biggest stock holding: Apple. The company's CEO Tim Cook is stepping down, but Buffett said he knows more about Apple now than he did years ago, and he is confident in the business. "If you're Apple, you've got very, very smart people all over the world shooting and trying to figure out how to make sure that Apple's future is as bright as the past."

Buffett's cautious stance on AI spending aligns with his long-standing preference for businesses with predictable cash flows and lower capital requirements. While he has made exceptions for tech giants like Apple, he typically avoids firms that require constant heavy reinvestment to stay competitive. Alphabet's massive AI investments, potentially totaling hundreds of billions, represent a significant departure from the kind of business model Buffett has traditionally favored.

What This Means for Berkshire's Future

Buffett's decision to personally initiate the Alphabet investment underscores his continued influence at Berkshire even after handing over the CEO role. He and Abel maintain close communication, with Buffett emphasizing that Abel is the ultimate decider. This partnership mirrors the transition from Buffett to his previous lieutenants and highlights how Berkshire's culture of decentralized decision-making persists.

Meanwhile, his warning about AI spending, however, suggests he remains cautious about the tech sector's capital requirements.

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