Warren Buffett Watched Alphabet's Stock Price Climb 9,000% Before He Decided to Invest. Here's Why He and Greg Abel Are Making It One of Berkshire Hathaway's Biggest Investments Now.
Warren Buffett and Greg Abel are making Alphabet one of Berkshire Hathaway’s biggest investments after watching its stock climb 9,000%. The move puts Berkshire’s endorsement behind Alphabet’s long-term earnings power, while leaving the timing and size of the investment as the key unknowns.
Yahoo Finance reports that Warren Buffett watched Alphabet’s stock price climb 9,000% before deciding to invest, with Buffett and Greg Abel now making Alphabet one of Berkshire Hathaway’s biggest investments. The report frames the decision as a long-term judgment on Alphabet rather than a reaction to a short-term price move.
Alphabet’s latest disclosed annual figures provide the operating backdrop: fiscal 2025 revenue was $402.8B, up 15.1% year over year, with a 32.8% net margin and diluted EPS of $10.81. Those figures show the scale and profitability behind the company Berkshire is backing, but they do not establish the investment’s purchase price or expected return.
The direct link is Berkshire Hathaway’s capital allocation to Alphabet’s equity. For Alphabet, the significance is reputational as well as financial: Buffett and Abel’s involvement can reinforce the view that its advertising, cloud and other businesses have durable earnings power, although the exact contribution of each business to the investment decision is not specified here.
The size, timing and terms of Berkshire’s investment remain central open questions. The report’s claim establishes the decision and its scale relative to Berkshire’s portfolio, but not a valuation threshold or a forecast for Alphabet’s shares.
Future Berkshire portfolio disclosures and Alphabet’s next results will provide the clearest tests of the thesis. Investors can compare any disclosed position changes with Alphabet’s revenue growth, margin and EPS trajectory; the next result will also show whether the company is sustaining the operating performance that underpins the endorsement.
Warren Buffett and Greg Abel are making Alphabet one of Berkshire Hathaway’s biggest investments after watching GOOGL climb 9,000%.
The setup is supportive for Alphabet’s long-term narrative because Berkshire is committing significant capital after a 9,000% rise, while Alphabet’s $402.8B fiscal 2025 revenue and 32.8% net margin show a large, profitable base. The missing purchase price, position size and forward event prevent a stronger directional call; the next test is whether operating results sustain the 15.1% revenue growth and $10.81 diluted EPS backdrop.
A materially weaker next Alphabet result, or portfolio disclosure showing a smaller-than-implied position, would weaken the endorsement-driven read.
CoverageSource: Yahoo Finance · Published here SAT, SEP 19 · 10:50 AM ET · the only report in this recordHow this is decided →
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Berkshire’s decision follows Alphabet’s 15.1% year-over-year fiscal 2025 revenue growth and $402.8B revenue base, giving the endorsement a concrete earnings foundation.
The bear case is that the investment’s price, size and valuation are not established, so Berkshire’s endorsement alone cannot show that GOOGL’s current entry point offers attractive returns.
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