Warren Buffett told CNBC's Squawk Box on Wednesday that Alphabet is more likely to beat 90% to 95% of Wall Street stock picks. The reason, he said, is that Wall Street is interested in selling, not in real returns.
Alphabet shares rose 3.65% to $370.36 after the interview. Berkshire Hathaway's stake in the company now tops $31 billion. Only Apple and American Express rank higher among Berkshire's stock holdings.
Why Buffett bet on Alphabet
Buffett said the Alphabet bet was his idea, not Greg Abel's. He admitted skipping Google in its early years was a mistake. Berkshire started buying Alphabet in the third quarter of 2025 and added through early 2026. Then in June 2026, Berkshire bought $10 billion more in a private deal tied to Alphabet's $80 billion AI raise.
An SEC filing shows Berkshire paid $351.81 per Class A share and $348.20 per Class C share.
The size of the bet
Alphabet plans $180 billion to $190 billion in capital spending this year, with more in 2027. The company's Q1 revenue grew 22% to $110 billion. Google Cloud sales jumped 63%. Operating cash flow over the past year reached $174 billion.
Buffett's last big tech swing was Apple in 2016, which became Berkshire's largest and most profitable holding. Alphabet joined the Dow three weeks ago.
What Buffett likes and doesn't like
Buffett still likes at least four or five other Berkshire businesses more than Alphabet. He criticized analysts for obsessing over next quarter instead of real returns. Several billionaires picked Amazon as their top AI trade instead of Alphabet.
Alphabet's earnings later this month will test whether the Buffett bump holds. Investors will watch to see if the stock can sustain its gains after the endorsement.
