Warren Buffett's Berkshire Hathaway buys Google stock for first time

Core Insights - Berkshire Hathaway has made a significant investment in Alphabet, acquiring approximately 18 million shares valued at about $4.3 billion, marking its first-ever stake in the company [3] - This investment comes after a nearly 50% increase in Google stock this year, indicating a potential shift in Berkshire's strategy towards tech investments [2] - Buffett's endorsement of Alphabet suggests that the stock is perceived as fairly valued or even inexpensive, despite its recent price surge [2] Investment Details - The new position in Alphabet is now Berkshire's 10th-largest holding, reflecting a strategic move into the tech sector by portfolio managers Todd Combs and Ted Weschler [3] - The investment aligns with Berkshire's previous successful bets on tech companies like Apple and Amazon, indicating a growing comfort with technology investments [3] Market Implications - Berkshire's investment adds credibility to Google's AI initiatives, especially at a time when other tech companies are facing scrutiny over AI-related costs [4] - This move represents a potential shift in Berkshire's investment philosophy, suggesting a more favorable outlook towards Silicon Valley and AI technologies [5] Portfolio Adjustments - Concurrently, Berkshire is reducing its stakes in other tech holdings, including a 15% cut to its Apple position, which remains its largest investment at approximately $60 billion [6]