Warren Buffett Says He Personally Started Berkshire's $31 Billion Alphabet Bet

In a rare admission, Warren Buffett, CEO of Berkshire Hathaway (BRK-B), said he was the one who made the decision to build the company's $31 billion position in Alphabet (GOOGL). He added that he should have bought the stock years ago but is now making up for lost time.

Details

According to a report from Motley Fool, Buffett acknowledged during a shareholder meeting that he personally takes responsibility for the Alphabet investment decision. He noted that he should have invested in the company earlier but did not. The current investment, valued at around $31 billion, makes Berkshire one of the largest shareholders.

Context

Berkshire Hathaway is known for its long-term investments in companies like Apple and Coca-Cola. However, it was relatively late in investing in major tech companies like Alphabet. Buffett's decision to invest in Alphabet reflects his confidence in the company's business model, particularly in digital advertising and cloud computing.

What It Means for Investors

Buffett's admission could boost confidence in Alphabet's stock, especially since he is regarded as one of the most savvy investors. However, investors should note that Buffett bought the stock after a significant decline, which may indicate he sees an attractive buying opportunity.