Warren Buffett disclosed that he personally drove Berkshire Hathaway’s large investment in Alphabet [1, 2].
The admission clarifies the internal decision-making process at the conglomerate, confirming that the CEO remains the primary architect of its major strategic shifts. This comes as investors closely monitor how Berkshire manages its massive holdings in Big Tech amid the rise of artificial intelligence.
Speaking with Becky Quick at the CNBC TV18 studio, Buffett said he was the one who pushed for the Alphabet stake [1, 2]. He said Greg Abel was not the driving force behind that decision [2].
Buffett also reflected on his timing regarding the search giant. "I made a mistake not investing in Google earlier, even though I saw the strength of its advertising business years ago," Buffett said [1].
Beyond Alphabet, the CEO addressed the broader impact of AI spending on the technology sector. While discussing these market shifts, he reaffirmed his continued favor for Apple [1, 2].
Buffett also commented on U.S. monetary policy and the leadership of the Federal Reserve. He said Kevin Warsh is a good choice for Fed chair and believes he will do the best job he can [3].
Warsh was nominated by President Donald Trump in January 2024 [4]. His appointment followed a Senate confirmation vote of 54-45 [5].
“"I was the one who pushed for the Alphabet stake; Greg Abel was not the driving force behind that decision."”
By explicitly attributing the Alphabet investment to himself rather than Greg Abel, Buffett is signaling that he still maintains tight control over the firm's high-conviction bets. His admission of a 'mistake' regarding the timing of the Google entry highlights the difficulty of valuing disruptive tech companies, even for the world's most successful investor. Furthermore, his support for Kevin Warsh suggests a preference for a Fed chair who aligns with his views on inflation and interest rate stability.
