Berkshire Hathaway’s new CEO Greg Abel is continuing to build on Warren Buffett’s investing legacy by aggressively expanding the company’s position in Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
Abel’s buying activity was disclosed through Berkshire’s latest Form 13-F filing, which revealed significant share purchases during the second quarter of 2026.
Berkshire (NYSE: BRKA) (NYSE: BRKB) bought approximately 48 million Alphabet shares during Q2, a stake worth around $16.3 billion at current prices.
That purchase elevates Alphabet to Berkshire’s third-largest holding when both share classes are combined, signaling deep confidence in the tech giant’s long-term trajectory.
Buffett himself initiated a position in Alphabet during the third quarter of 2025, shortly before retiring at the end of that year, and has publicly said he wishes he had bought the stock sooner.
Abel’s decision to keep adding shares suggests Berkshire’s leadership views Alphabet as a core holding capable of delivering strong returns well into the future.
Alphabet’s recent financial performance gives that conviction a solid foundation, with the company posting overall revenue growth of 24% year over year in Q2.
A major driver of that acceleration is Google Cloud, which reported revenue of $24.8 billion in Q2, representing an extraordinary 82% increase year over year.
Google Cloud also generated $8.8 billion in operating income during the quarter, a figure that analysts say could support a trillion-dollar standalone valuation for the division.
That growth is being fueled by massive investment in AI infrastructure, with Alphabet spending hundreds of billions of dollars on data centers to expand its AI computing capacity.
Rather than using all of that capacity internally, Alphabet is renting a significant portion to other businesses through Google Cloud, turning its infrastructure spending into a direct revenue engine.
Despite these impressive results, Alphabet stock remains reasonably priced at approximately 23 times next year’s earnings on a forward price-to-earnings basis.
One-time investment gains have distorted Alphabet’s trailing earnings ratio, making a forward-looking valuation the more accurate way to assess the stock’s current pricing.
At that forward multiple, Alphabet is not the cheapest name in the market, but it is far from overvalued given the scale and pace of its growth across multiple business lines.
As AI computing demand continues to rise globally, Alphabet’s infrastructure investments position it to capture an expanding share of enterprise cloud spending in the years ahead.
The combination of accelerating revenue, disciplined capital deployment, and a forward earnings multiple below 25 makes Alphabet a compelling case for investors seeking AI-driven growth at a reasonable price.
Abel’s continued buying reinforces the view that Berkshire sees Alphabet not as a speculative AI play but as a durable, high-quality business with strong long-term fundamentals.
