Alphabet Shares Rise As Berkshire Hathaway Reveals Major New Stake

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(RTTNews) - After Warren Buffett's Berkshire Hathaway revealed a multibillion-dollar investment in the parent company of Google, one of the conglomerate's most prominent tech bets in recent years, Alphabet shares increased by roughly 3 percent on Monday.

According to a regulatory filing, as of September 30, Berkshire owned approximately $4.3 billion worth of Alphabet stock, ranking it as the company's tenth-largest equity position.

Many Buffett watchers were taken aback by the move, considering the billionaire has a lengthy history of avoiding rapidly expanding tech firms. Buffett has consistently presented Apple as a consumer brand rather than a pure tech play, even though it has grown to be Berkshire's largest holding.

Investment deputies Todd Combs or Ted Weschler, who have led investments in Amazon in the past and are increasingly influencing Berkshire's $300 billion portfolio, most likely made the Alphabet acquisition.

However, given the size of Alphabet's stake, it appears Buffett approved the move as he gets ready to hand over the CEO position to Greg Abel in January.

This year, Alphabet has risen 46 percent thanks to advances in AI and Google Cloud's rapidly increasing profitability. According to analysts, the stock's strong cash flow and lower valuation in comparison to Microsoft, Broadcom, and Nvidia probably made it a desirable option for Berkshire's next generation of executives.