That caught my attention. Many top fund managers are trimming their Alphabet stakes. Warren Buffet just bought more. And he personally confirmed it was his idea to buy more Alphabet shares.
This ended the speculation on who in Berkshire Hathaway made the Alphabet call.
You see, Berkshire Hathaway started buying the tech giant stock in 3Q2025 and added more through early 2026. In fact, Berkshire’s purchase cost of Alphabet shares is higher than mine.
This matters a lot to me, especially since I own Alphabet shares myself..
I’ve been attending Warren Buffett’s AGM. And last year, he announced his retirement. Greg Abel now runs the company. And we naturally assume any future technology stock bets would be made by Abel, not the 95-year old GOAT.
So when Warren Buffett said he made that call, it surprised many people.
The question is: why buy more Alphabet now?
The thing is, big tech companies are burning large sums of cash to build AI data centres. If all that AI spending doesn’t pay off, it’s going to be very expensive. That’s the big worry.
So why Alphabet?
Alphabet is a trillion dollar market cap giant. It owns Google Search. It owns Youtube. Both are the two biggest search engines in the world today.
What’s more, the tech company has managed to fold its AI model, Gemini, directly into its search business – not many companies can do this well. What’s more, Alphabet has been producing massive free cash flow. This is the fuel that keeps strong businesses going.
Put it this way, Warren Buffett did the same thing with Apple years ago. He took a large stake in the tech giant, a sector he wasn’t naturally drawn to. That turned out to be one of the best bets in his career.
In fact, Warren Buffett says Alphabet is more likely to beat 90 to 95% of the stock picks Wall Street makes.
Of course, high valuations and massive hyperscaler capex spending, buying more Alphabet shares can be a risk.
Yet, I don’t believe Warren Buffett bought more Alphabet because he suddenly believes in chasing the AI bubble.
I believe he stuck to his principles of buying a great business with a deep economic moat and predictable profits. That’s the kind of business we look for as long-term investors.
What most people miss
But the real lesson is here and what most people overlook. Buffett isn’t betting his whole fortune on Alphabet stock.
Berkshire Hathaway is a massive, well–diversified compounding machine built over decades. Even if he made a mistake, it won’t sink the ship. Yes, Warren Buffet makes mistakes too: ConocoPhillips, US Airways, Dexter Shoes and so on.
And that’s why it’s so important we diversify. Spreading your money across 25-30 solid businesses in your portfolio is safer and more profitable than just buying 3-5 stocks. Why? Because it allows you plenty of room to be wrong – without losing everything.
I repeat: diversify allows you plenty of room to be wrong – without losing everything.
In my portfolio I share with Diligence Wealth Club members, Alphabet is just one piece of my bigger, well-built stock portfolio.
If you only own three or four stocks, one bad call can destroy years of savings. But if you spread your money across many solid businesses, even if you made one mistake, you still can sleep soundly.
More importantly, I can safely compound my wealth better this way.
Sometimes, investing can be simple.
Willie Keng, CFA
Founder, Dividend Titan
