Why does the author see Berkshire's expansion into Alphabet as a problem?

The author sees the issue in the how and why of the expansion, not the size, suggesting the strategy may be ill-timed.

Has Warren Buffett changed his strategy toward tech stocks?

Traditionally, Buffett avoided tech stocks, but recent investments in Apple and Alphabet indicate a strategic shift.

Berkshire Hathaway Nears Making Alphabet Its Fourth-Biggest Holding

Berkshire Hathaway is on track to make Alphabet its fourth-largest holding. However, the author raises concerns about the motives and method of this expansion.

June 4, 2026

2 min read

Source: Motley Fool

Berkshire Hathaway (BRK-B) is set to make Alphabet (GOOGL, GOOG) its fourth-largest portfolio holding, according to an analysis by Motley Fool. The author argues that the issue is not the size of the stake, but the how and why behind the conglomerate's expansion.

Recommendation Change

No specific analyst changed a rating, but the article notes that Berkshire has significantly increased its Alphabet stake, making it the fourth-largest holding.

Analyst's Rationale

The author questions Berkshire's strategy, especially given its historical avoidance of tech stocks. The timing may also be questionable due to current market valuations.

Context

This move comes amid increased regulatory scrutiny on big tech. Other analysts believe Alphabet still has strong competitive advantages in digital advertising and cloud computing.

Conclusion

Berkshire's decision remains debated, with some viewing it as a long-term bet on a strong company, while others see it as an uncharacteristic risk from Warren Buffett.

Frequently Asked Questions

Berkshire's largest holdings include Apple, Bank of America, and Coca-Cola, with Alphabet expected to become the fourth-largest.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.