A Well-Timed Google Play

Warren Buffett and his investment team at Berkshire Hathaway (BRK.A) just disclosed a fresh bet on Alphabet (GOOGL) that's already paying dividends. The conglomerate scooped up 17,846,142 Class A shares during the third quarter, establishing a position that immediately became the fund's 10th-largest holding at 1.6% of the portfolio.

The timing looks pretty brilliant. Alphabet shares closed at $243.10 on September 30, valuing Berkshire's stake at $4.34 billion at quarter-end. Fast forward to today, with shares trading around $287.01, and that position is worth approximately $5.12 billion. That's an unrealized gain of $783.6 million, or 18.1%, in just a matter of weeks.

Alphabet shares even touched new all-time highs of $293.95 on Monday, the first full trading day after Berkshire's stake became public knowledge. While we don't know exactly when Buffett and company purchased their shares or what they paid, the value has clearly soared since the quarter closed.

Playing Catch-Up With the Market

Here's the thing: Berkshire Hathaway is having an off year relative to the broader market. As 2025 heads into its final stretch, Berkshire (BRK.B) stock is up 11.4% year-to-date, while the SPDR S&P 500 ETF Trust (SPY) has gained 13.2%. It's not a disaster, but Buffett's firm is trailing the benchmark it usually aims to beat.

Part of the problem might be Berkshire's largest holding: Apple Inc. (AAPL). The iPhone maker represents roughly 23% of the investment portfolio but has only gained 9.8% this year, lagging both the S&P 500 and Berkshire's own stock.

Meanwhile, Alphabet is up 51.4% year-to-date, making it one of 2025's top-performing large-cap stocks. Obviously past performance doesn't guarantee future returns, but the contrast is striking. Berkshire even reduced its Apple position in the third quarter, which could signal either routine portfolio rebalancing or a strategic shift toward favoring Alphabet's growth prospects over Apple's.

The Tech Transformation Continues

This Alphabet investment fits into a broader evolution at Berkshire Hathaway. For decades, Buffett famously avoided technology stocks, sticking to businesses he felt he understood. That's changed dramatically in recent years. Apple, Amazon.com, and now Alphabet are all in the portfolio, giving Berkshire ownership stakes in three of the so-called Magnificent Seven tech giants.

The timing is particularly interesting given that Buffett is set to step down from his CEO role at Berkshire Hathaway at the end of this year. The portfolio could take on even more technology exposure under new leadership, and this Alphabet position might represent a bet on the future of artificial intelligence and digital advertising dominance.

Whether this move helps Berkshire close the gap with the S&P 500 remains to be seen. But with nearly $784 million in paper gains already on the books, the Alphabet bet is off to a strong start. Sometimes even the Oracle of Omaha can benefit from good timing in a tech rally.