Warren Buffett Says Alphabet Is More Likely to Win Than 95% of Wall Street

Key Points:

• Warren Buffett acknowledged that although Alphabet is one of Berkshire Hathaway’s largest holdings, he does not rank it among the top four or five best businesses the company owns, emphasizing a distinction between owning a great company and considering it a best-in-class business.
• Buffett revealed that he initiated Berkshire’s investment in Alphabet, not CEO Greg Abel, clarifying that both executives remain closely aligned on investment decisions despite Abel’s recent succession as CEO.
• Berkshire Hathaway began disclosing its Alphabet stake in Q3 2025 and has since increased its position, including participating in a $10 billion private placement to support Alphabet’s AI infrastructure, bringing the total investment above $31 billion.
• Buffett praised Alphabet’s long-term prospects and operating record, stating it is more likely to succeed compared to most Wall Street offerings, but noted the company’s significant capital requirements, especially in AI, contrast with his preference for businesses with durable competitive advantages and lower capital intensity.
• The discussion highlights Buffett’s enduring investment philosophy of seeking companies that can generate high returns on capital over extended periods, and suggests individual investors may find opportunities in private companies before they become large public giants like Alphabet.