The legendary investor Warren Buffett has made headlines by dramatically reducing his massive Apple investment while simultaneously placing a bold $4.3 billion bet on Google’s parent company, Alphabet. This surprising move marks one of the biggest portfolio shifts in Berkshire Hathaway‘s recent history.
Buffett’s relationship with Apple has been quite the success story. Starting in 2016, Berkshire gradually built up a position of roughly 238 million shares worth about $64 billion, making Apple their largest holding at nearly 24% of the portfolio. The investment generated an impressive 440% gain from the initial $11.9 billion cost basis.
Apple transformed from a $11.9 billion gamble into Berkshire’s crown jewel, delivering a stunning 440% return over eight years.
However, even golden geese sometimes need a reality check. The Oracle of Omaha trimmed his Apple stake by over 40% in early 2024, citing valuation concerns that would make even the most optimistic investor pause. While Apple’s stock price doubled since 2022, its revenue remained surprisingly flat.
Multiple valuation models suggested the tech giant was trading well above fair value, prompting Buffett to lock in gains and seek better opportunities elsewhere. Despite the significant reduction, Berkshire still maintains ownership of 1.59% of Apple’s outstanding shares. Analysts have set a price target of $242.13 for Apple shares, while the company maintains its massive $3.14 trillion market capitalization.
Enter Google, stage left. Berkshire’s Q3 2025 filings revealed a substantial $4.3 billion investment in Alphabet, purchasing 17.8 million shares and making it their tenth-largest holding. This represents Buffett’s boldest move into pure technology since his Apple adventure began.
Alphabet’s stock has surged roughly 46% year-to-date, driven by artificial intelligence and data center growth that has investors buzzing with excitement.
The strategic shift reflects more than just number-crunching. While Apple focuses primarily on hardware, Google operates across the broader digital ecosystem with search, cloud computing, and AI development. This *pivot* signals Berkshire’s evolution from traditional value investing toward embracing selective high-growth technology trends.
The portfolio rebalancing has boosted Berkshire’s cash reserves to a record $382 billion, providing tremendous flexibility for future investments. Unlike Apple, which rarely pays dividends to shareholders, Google may eventually provide additional income streams as Berkshire’s technology holdings mature.
As Buffett prepares to step down by late 2025, this Apple-to-Google transition may also reflect influence from incoming management preparing to navigate an increasingly digital future.
Sometimes the best investment strategy involves knowing when to cash out winners and place fresh bets.
