Warren Buffett says he initiated Berkshire's Alphabet bet, but it is not his favourite. Here's why

Legendary investor Warren Buffett said that it was him, not his successor and new Berkshire Hathaway CEO Greg Abel, who led the conglomerate’s massive investment in Google-parent and tech giant Alphabet, although it is not among his favourite bets

“I initiated it,” he said in an interview with CNBC. “I am not doing anything that he does not approve of. He is not doing anything I don’t approve of. We talk all the time, but he is the decider,” the 95-year-old Berkshire Chairman added, referring to his CEO successor, Ger Abel.

Recently, Berkshire agreed to buy Alphabet shares worth $10 billion in a private placement last month, according to the Google parent. Berkshire began investing in Alphabet in the third quarter of last year and held $16.6 billion worth of shares as of March 31 this year. The latest investment made Alphabet one of Berkshire's five largest common stock holdings, led by iPhone maker Apple.


Why is Google not among Buffett's top picks?

During his latest interview, Buffett acknowledged that he “made a mistake” by not investing in Alphabet sooner, although it was not among his favorites. “I would say that I don’t like it as well as at least four or five other businesses that we own. The real question with Google and all of its competitors now, because they are all laying out hundreds of billions, and that is real money. That is the game they are playing now. They weren’t playing that game with computer software,” he told CNBC.

Warren Buffett back in 2017 had reflected on missed opportunities with Google. He often explained why he avoided buying tech stocks as he did not really understand how they were making money or whether they would be able to do so in the past - a decision that he later said cost a lot of money for Berkshire investors. However, his successor seems to be taking the opportunity to ride on the AI bandwagon.

Also read: Warren Buffett and Bill Gates no longer friends? Why legendary investor skipped donations to Gates foundation

Warren Buffett on Apple bet

Buffett in his latest interview reiterated that Apple remains one of his favorite stocks even after news that Tim Cook is stepping down as CEO. “I know more about Apple than I knew many years ago. If you are Apple, you have got very, very smart people all over the world shooting and trying to figure out how to make sure that, Apple’s future, the future is as bright as the past,” he said.

Greg Abel took over as the CEO of Berkshire Hathaway on January 1 this year. The succession plan, long anticipated by investors, saw Greg Abel assume operational control from January this year. Abel is also expected to lead Berkshire’s next annual shareholder meeting in Omaha, signaling a shift in day-to-day leadership even as Buffett remains an active presence.

Despite the transition, Buffett had earlier indicated he would continue coming to the office, reinforcing his long-standing approach to investing and business. His continued engagement suggests that while Berkshire has entered a new phase structurally, its core investment philosophy shaped by Buffett is unlikely to see any abrupt change.

Also read: Will Google be Berkshire CEO Greg Abel's best stock pick after predecessor Warren Buffett's Apple bet?

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)