Warren Buffett Regretted Not Investing in Alphabet Earlier. New CEO Greg Abel Won't Have the Same Worry.

Berkshire Hathaway under CEO Greg Abel bought approximately 40 million shares of Alphabet in Q1 2026 and committed $10 billion in a private placement in June, marking a dramatic acceleration of the conglomerate's bet on the Google parent. The moves validate Alphabet's AI positioning at a time when investors are questioning whether massive capital expenditures in the sector will deliver returns. Alphabet shares have outperformed the S&P 500 by more than double over the past five years—164% versus 70%.

The stake-building represents a strategic shift for Berkshire, whose former CEO Warren Buffett publicly regretted missing Alphabet's earlier growth. Abel's willingness to deploy billions into the stock signals institutional confidence in the company's ability to monetize AI infrastructure investments. The private placement in particular suggests negotiated terms that gave Berkshire favorable entry, though details of the transaction structure have not been disclosed.

The timing matters. Tech investors are scrutinizing AI capital intensity across the sector, with concerns mounting about when—and whether—the spending will translate to profits. Berkshire's vote of confidence provides a counterweight to that skepticism.