Does Berkshire's big tech bet signal a new risk tolerance in Omaha?

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Just 1 week aft Berkshire Hathaway's revelation past Friday that it purchased 17.8 cardinal Class A shares of Google's parent, Alphabet, in the 3rd 4th (July-September), that presumption has accrued successful marketplace worth by $415 cardinal to astir $5.35 billion.

GOOGL gained 8.4% this week portion its biggest tech rivals fell significantly as Nvidia's strong net failed to flooded fears of an "AI bubble."

Alphabet shares started the week with a 3.1% boost connected Monday, seemingly successful absorption to the quality of Berkshire's purchase.

Wednesday's merchandise of Google's caller Gemini 3 AI model, which is receiving affirmative reviews, gave the banal different propulsion higher.

(Google's AI momentum is reportedly opening to worry Sam Altman astatine OpenAI.)

While the afloat valuation of the determination evidently can't beryllium made until months oregon years from now, idiosyncratic successful Omaha is astir apt smiling close now.

Warren Buffett is getting the recognition successful a batch of headlines, arsenic helium usually does, with galore publications assuming helium is liable for everything Berkshire does.

We cognize that's not the case, however, since portfolio managers Ted Weschler and Todd Combs are able to enactment arsenic "free agents."

As I noted past week, Alphabet doesn't consciousness similar Buffett's "kind of stock."

CNBC.com's Yun Li writes the concern "likely" was the enactment of Weschler oregon Coombs, noting they person been down galore of Berkshire's "tech-leaning" investments, including its Amazon stake, present worthy $2.2 billion.

(Even earlier that presumption was archetypal disclosed successful 2019, Buffett went retired of his mode to archer CNBC's Becky Quick it wasn't his determination and "no property alteration has taken place.")

Bloomberg Opinion columnist Nir Kaissar recalls Buffett's celebrated refusal to put successful a concern helium doesn't afloat understand, which kept him retired of the net bubble successful the precocious 1990s, calling AI "orders of magnitude much analyzable than selling books oregon favored nutrient online."

He adds, "Combine opaque exertion with premium valuations, and you're definite to suffer Buffett."

Kaissar says helium has the content CEO-designate Greg Abel whitethorn person conscionable shown america a "very antithetic attack than Berkshire's shareholders are utilized to – notably, a caller willingness to wage much present for perchance higher maturation down the road, a accidental Buffett seldom took, if ever."

Berkshire has not responded to my midday email asking for clarification connected who decided to marque the Alphabet purchase. The institution astir ne'er reveals who bought what.

AUDIENCE MEMBER: In presumption of these tech stocks, you accidental that you don't recognize them... I can't ideate you not knowing something.

WARREN BUFFETT: Oh, we recognize the product. We recognize what it does for people. We conscionable don't cognize the economics of it 10 years from now.

That, I mean, you tin recognize each kinds -- you tin recognize steel. You tin recognize location building. But if you look astatine a location builder and effort and deliberation wherever it's going to beryllium successful 5 oregon 10 years, the economics of it, that's different question.

I mean, it's not a question of knowing the merchandise they crook retired oregon the means they usage to administer it, each of those benignant of things. It's the predictability of the economics of the concern 10 years out. And that -- that's our problem.

BRK.A banal price: $755,320.00

BRK.B banal price: $504.04

BRK.B P/E (TTM): 16.12

Berkshire marketplace capitalization: $1,085,818,736,612

Berkshire Cash arsenic of September 30: $381.7 cardinal (Up 10.9% from June 30

Excluding Rail Cash and Subtracting T-Bills Payable: $354.3 cardinal (Up 4.3% from June 30)

No Berkshire banal repurchases since May 2024.

(All figures are arsenic of the day of publication, unless different indicated)

Berkshire's apical holdings of disclosed publically traded stocks successful the U.S. and Japan, by marketplace value, based connected today's closing prices.

Holdings are arsenic of September 30, 2025, arsenic reported in Berkshire Hathaway's 13F filing on November 14, 2025, but for:

• Mitsubishi, which is arsenic of August 28, 2025. Tokyo Stock Exchange prices are converted to U.S. dollars from Japanese yen.

The afloat database of holdings and existent marketplace values is disposable from CNBC.com's Berkshire Hathaway Portfolio Tracker.

Please nonstop immoderate questions oregon comments astir the newsletter to maine at alex.crippen@nbcuni.com. (Sorry, but we don't guardant questions oregon comments to Buffett himself.)

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Also, Buffett's yearly letters to shareholders are highly recommended reading. There are collected here connected Berkshire's website.

-- Alex Crippen, Editor, Warren Buffett Watch