Berkshire Hathaway Just Poured Billions Into One Stock. Here’s Why.

Warren Buffett avoided technology stocks for most of his career, until he built Apple (NASDAQ:AAPL) into Berkshire Hathaway 's (NYSE:BRKA)(NYSE:BRKB) largest holding. Now that Buffett has stepped down, new CEO Greg Abel appears to be forming a second major tech holding. According to Berkshire's latest SEC filings, Google parent company Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) is now the fourth-largest position in the portfolio, with a stake worth more than $28 billion.

To be sure, we don't know exactly why Greg Abel has been building the Alphabet position, although we know Buffett played an active role in the decision. But here's what investors need to know, and some of the qualities Alphabet has that Buffett loves to see.

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As mentioned, Berkshire's leadership hasn't provided the exact reasons for its decision to buy Alphabet. We do know that the position was initiated in Berkshire's portfolio by Warren Buffett himself in late 2025, who said he regretted not buying the Google parent earlier. The more recent buys were Greg Abel's decision, and he hasn't commented publicly about his reasons for the large investments. However, there's a lot about the mega-cap tech giant that fits Berkshire's investment style.

One is cash flow. Alphabet comprises two highly profitable main business segments. Google Services includes the Search business, as well as YouTube, Chrome, Android, Google Maps, Gmail, and most of the other public-facing Google components. Google Cloud is a cloud services platform, and although it's the third-largest player in an essentially three-horse race, it has been gaining share on its competitors, and its revenue has been accelerating sharply in recent quarters.

Another is market leadership. Google Search accounts for about 90% of global search volume. Android is the leading mobile device operating system worldwide. And who doesn't have a Gmail address? As mentioned, Cloud isn't the market leader, but given its impressive growth trajectory, it wouldn't be a shock if it eventually became the leader. After all, Google Cloud revenue grew 82% year-over-year in the second quarter, compared to 37% growth for Amazon' s (NASDAQ:AMZN) AWS and 43% growth for Microsoft 's (NASDAQ:MSFT) Azure, which are numbers one and two, respectively.