Warren Buffett told CNBC he personally drove Berkshire Hathaway’s move into Alphabet, confirming he initiated the stake and discussing AI spending, Apple (AAPL) and succession with CEO Greg Abel.
Warren Buffett told CNBC he personally initiated Berkshire Hathaway’s investment in Alphabet (GOOGL) and has continued to expand the position, offering the first public explanation of how the holding became one of Berkshire’s largest technology stakes. In a televised interview with CNBC’s Becky Quick, Buffett said, “I initiated it,” and emphasized that while he and CEO Greg Abel consult closely, Abel is the decider. “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. Market moves and corporate actions supported by Berkshire’s filings show the conglomerate first disclosed a stake in Alphabet in the third quarter of 2025 and later participated in a $10 billion private placement this year to help fund Alphabet’s artificial intelligence infrastructure, the company has said.
Why Buffett acted now
Buffett said the core of his decision is consistent with long-standing investment criteria: find businesses that can earn high returns on capital for an extended period. He acknowledged a past error in timing, saying he “made a mistake” by not investing in Alphabet earlier, and again expressed regret for missing the company’s early gains.
On competition and AI spending
Buffett highlighted the enormous capital commitments required to compete in artificial intelligence, noting Alphabet and its peers are “laying out hundreds of billions” to build AI capability. “That’s real money,” he said, adding this is a different capital profile than traditional software businesses.
Buffett on Apple and leadership
While noting Alphabet’s importance to Berkshire’s portfolio, Buffett said it is not among his very favorite businesses at Berkshire, adding he prefers “at least four or five other businesses that we own” more. Buffett reaffirmed his favorable view of Apple (AAPL), Berkshire’s largest equity holding, even amid news about Tim Cook stepping down as CEO. “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,” he said.
Context & background
- Berkshire first disclosed an Alphabet position in Q3 2025 and has expanded the holding since.
- Earlier this year Berkshire took part in a $10 billion private placement with Alphabet focused on AI infrastructure funding.
- Buffett formally handed operational reins to Greg Abel after announcing his planned step-down in May last year; the transition took effect at the start of the year.
Key quotes
- “I initiated it.” — Warren Buffett on who started Berkshire’s investment in Alphabet.
- “He is the decider.” — Buffett on Greg Abel’s role as CEO.
- “They’re all laying out hundreds of billions… That’s the game they’re playing now.” — Buffett on AI capital spending.
Bottom Line for Traders
This disclosure clarifies Berkshire’s authorship of its Alphabet position and underscores Buffett’s ongoing engagement with major technology exposure. The company’s participation in Alphabet’s AI-focused private placement signals Berkshire’s willingness to back large-scale capital programs, while Buffett’s comments frame Alphabet’s AI spending as a critical strategic and capital-intensity factor investors should note.
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