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Geoffrey Seiler, The Motley Fool
Fri, June 5, 2026 astatine 12:50 PM CDT 4 min read
Under erstwhile CEO Warren Buffett, Berkshire Hathaway (NYSE: BRKB) (NYSE: BRKA) was ne'er a large capitalist successful the tech sector. Buffett ever believed that we should put successful what we know, and helium didn't judge helium understood astir tech stocks good capable to bargain them.
On apical of that, fixed the gait of innovation, helium believed that tech companies not lone got disrupted excessively quickly, but besides that disruption was successful information the tech concern exemplary itself. With humble moats and concern models having to perpetually evolve, helium recovered projecting a company's semipermanent net and currency travel to beryllium mode excessively difficult.
Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »
Buffett yet started to put successful the assemblage successful 2011 with International Business Machines, fixed its much predictable concern model, though the banal woefully underperformed. He aboriginal deed wage ungraded with Apple, but helium viewed it overmuch much arsenic a user goods institution than a tech company, which is simply a just point.
Abel puts his stamp connected Berkshire's concern portfolio
New CEO Greg Abel is leaving his ain people connected Berkshire and its concern portfolio by loading up connected shares of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Berkshire bought astir $17 cardinal worthy of shares implicit the past 3 quarters, and it volition acquisition $10 cardinal much successful a backstage placement arsenic portion of an $80 cardinal offering by Alphabet to assistance money its information halfway construction. This latest concern is acceptable to marque Alphabet Berkshire's fourth-largest equity holding, assuming nary different large changes astatine the apical of its portfolio.
And marque nary mistake, Alphabet is simply a stake connected tech and artificial quality (AI), not a user goods bet. The institution is raising currency done this equity offering to aggressively grow its AI infrastructure. It volition marque $180 cardinal to $190 cardinal successful superior expenditures this year, with plans to importantly rise that magnitude successful 2027.
This is nary longer a institution generating a boatload of escaped currency travel that Berkshire is investing in, but 1 that plans to walk unapologetically fixed the accidental it sees successful beforehand of it. With the large outgo borderline that Alphabet has with its chips and AI models, its spending makes sense. But it is astonishing to spot Berkshire bargain into it, adjacent though the institution is the astir implicit AI play retired there.
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