The Confession…
For decades, Warren Buffett stayed away from Alphabet GOOG ( ▲ 3.61% ).
This week, he admitted that was a mistake.
He also cleared up something investors had been debating since Berkshire first disclosed the position.
→ The decision to buy Alphabet wasn’t Greg Abel’s.
→ It was Buffett’s.
Here’s the story.⇩
SPONSOR BREAK presented by MarketWise*
Will You Survive the MAR-A-LAGO RESET?
Bloomberg calls it “a dire shift of fortunes for America” and The Wall Street Journal calls it a “New World Order.” Now, Dr. David Eifrig – a 40-year market veteran who traded through Black Monday and has recommended more than a dozen triple-digit winners – warns that you must make one of the most important financial decisions of your lifetime today. He strongly recommends this ONE step to potentially secure your retirement.
Built In Just One Year…
✱ Berkshire’s Alphabet stake is already worth nearly $21 billion—and it isn’t finished growing.
→ ~$21B — Value of Berkshire’s Alphabet stake (Bloomberg, Tuesday’s close)
→ $10B — Private placement still expected to close
→ 8.8% — Of Berkshire’s $348 billion equity portfolio
→ Top 5 — Now one of Berkshire’s largest holdings
What makes this remarkable isn’t just the size—it’s the speed.
Berkshire didn’t spend a decade building this position the way it did with Coca-Cola or American Express. It started buying Alphabet just last year and, in roughly twelve months, assembled a stake worth nearly $21 billion, making it one of the five largest holdings in the entire portfolio. That isn’t gradual portfolio drift. It’s a high-conviction allocation.
And the position isn’t finished.
The current ~$21 billion figure reflects Berkshire’s publicly traded shares at Tuesday’s close. It doesn’t yet include the $10 billion private placement that’s still expected to close. Berkshire agreed to invest $5 billion in Class A shares at $351.81 each and another $5 billion in Class C shares at $348.20 each.
Once that transaction settles, Berkshire’s Alphabet exposure will climb again—without purchasing another share on the open market.
In other words, one of Berkshire’s biggest bets is still being built in real time.
SPONSOR BREAK presented by Paradigm*
Trump to Unleash Giant $2.7 Trillion Gold Mine?
Executive Order #14153 outlines what Jim Rickards believes are Trump’s intentions to unleash the largest mineral reserve in the country.
According to Jim’s research, he estimates it contains up to $2.7 trillion in gold, silver, copper, and other precious elements
This single company – trading for just $2 per share – holds 100% of the rights to this asset.
But you need to act before November 3 to take advantage before the President makes his next move…
That’s when a landmark policy decision could reprice this $2 stock, overnight.
This opportunity is so explosive, it’s possible shares could skyrocket 50-times or more by the end of Trump’s term.
But – time’s running out.
Go here to get the full details before this stock soars.
The Other Half Of The Story.
Here is Alphabet’s $80 Billion capital raise:
✱ $10B – Berkshire private placement
→ $5B of Class A shares at $351.81
→ $5B of Class C shares at $348.20
✱ $30B – Public offering of common and convertible preferred shares
✱ $40B – At-the-market share sale program beginning in Q3
Berkshire’s $10 billion investment isn’t an ordinary stock purchase.
It is part of a coordinated $80 billion capital raise that Alphabet is using specifically to fund its AI infrastructure buildout.
That makes Berkshire more than just a shareholder.
It becomes one of the largest financial backers of Alphabet’s AI ambitions.
The decision is particularly notable because issuing new shares dilutes existing investors. Rather than sitting on the sidelines, Berkshire chose to participate directly—signaling confidence that the long-term returns from Alphabet’s AI investments will outweigh the near-term cost of dilution.
SPONSOR BREAK presented by BrownstoneResearch*
Nvidia poured over $7B into this
Take a look at this…
It’s a radical “light-speed” device that’s turning AI as we know it into “Accelerated AI”, making it 100 times faster and 100 times more energy efficient.
In fact, Jensen Huang, Nvidia’s founder and CEO, says this device is shattering the limitations of AI and without it, AI can’t scale.
If you want to discover what this technology is, why Nvidia is betting billions on it…
And the one stock we believe could be the biggest winner when “Accelerated AI” goes mainstream…
How Buffett Fixed His Mistake…
The timeline ↓
1 Pre-2025 – Buffett overlooks Alphabet entirely — by his own admission, a mistake, made while the stock was “still asset-light and a markets darling.”
2 Q3 2025 – Berkshire initiates its first Alphabet position — entering, per Motley Fool’s analysis, at under 20x forward earnings.
3 Q1 2026 – Greg Abel increases the position by roughly 200% and opens a new stake in Class C shares — at a higher valuation, still considered reasonable.
4 Jul 2, 2026 – Reuters reports Alphabet’s $80 billion capital raise, including the $10B Berkshire private placement.
5 Jul 15, 2026 – Buffett tells CNBC he personally initiated the original Alphabet bet — not Abel.
Not His Favorite. Still One of His Biggest.
Buffett isn’t putting Alphabet at the top of Berkshire’s list. In his view, there are still several businesses he prefers. Yet Alphabet has become one of Berkshire’s five largest holdings—a reminder that investing isn’t about finding the single best opportunity. It’s about owning enough great businesses at the right price.
SPONSOR BREAK presented by ParadigmPress*
Move your money NOW! – Former CIA Advisor
He predicted the 2008 financial crisis…
He predicted Trump’s election in 2016….
He even predicted the rise of COVID-19 writing:
“The chance we don’t have something on the scale of a national pandemic in the next few years is near zero”
That was three months before the first reported case.
If he’s right again, God Bless America…
Because this crisis will be tectonic in scale…and it’s going to begin with the bubble popping in AI.
30% of Berkshire Is Now In Two AI Stocks…
Apple alone once accounted for roughly half of Berkshire Hathaway’s entire equity portfolio.
Today, that concentration has been spread across two technology leaders with very different businesses.
Why This Is Actually More Diversified, Not Less.
At first glance, Berkshire appears to be making an even bigger bet on AI. But the portfolio is actually less concentrated than it was a few years ago.
In mid-2023, Apple alone accounted for roughly 50% of Berkshire’s equity portfolio.
Today, Apple and Alphabet together represent 29.4%—spread across two businesses with very different economics.
Apple is driven by hardware and services. Alphabet is powered by digital advertising, cloud computing, and AI.
The headline may be “more AI exposure,” but the portfolio is now less dependent on a single company. That’s a meaningful reduction in concentration risk, even as Berkshire doubles down on two long-term winners.
What’s Actually Driving The Bull Case?
Alphabet’s fundamentals continue to strengthen.
✱ Google Cloud grew more than 60% year over year last quarter, while its backlog nearly doubled to about $460 billion. Company-wide revenue reached $77.25 billion, and management said AI helped drive record search activity—important because more searches create more advertising opportunities, the core engine of Alphabet’s business.
✱ The stock no longer trades at the bargain Berkshire found last year. Its forward P/E has risen from under 20x when Berkshire first bought shares to roughly 24x today. Even so, the valuation remains modest compared with the company’s growth profile, especially as AI continues to accelerate both Search and Cloud.
In Hindsight.
Worth remembering from three weeks ago:
Berkshire sold out of Amazon entirely — 10 million shares down to zero — around the same window that Tepper, Ackman, and Klarman were all building large, conviction-sized Amazon positions.
At the time, that looked like Berkshire stepping away from Big Tech concentration altogether.
Today’s news complicates that read: Berkshire didn’t step away from Big Tech. It stepped away from Amazon specifically, and reallocated hard into Apple and Alphabet instead.
Don’t forget to cast your vote 👇
Lesson Of The Day:
Was this email forwarded to you? Don’t miss out on future stories — subscribe using the button below.
Also, help your friends blossom this spring! Share us with them.
💬 We Want To Hear Your Story:
Got a market or stock you want us to analyze next?
Just drop your request in the comments here.
P.S. – If you no longer want to receive occasional emails from us and you want to unsubscribe, click here 👉 “Unsubscribe” . Thank you!
