Warren Buffett, now retired as the CEO of Berkshire Hathaway, has long advised investors that knowing what not to buy is just as important as identifying good investments.
His approach has been to target businesses with stable demand, pricing power, solid cash flow, and that can endure economic fluctuations.
In general, technology has presented a challenge for him. It’s not that he doubts its value; it’s the fast-paced disruption that raises uncertainty for long-term predictions.
Buffett once expressed that their strength lies in understanding their limitations.
While he acknowledged Apple’s strong brand, his cautious nature made Berkshire’s investment in the tech giant quite significant.
Recently, he revealed he had taken a personal interest in Alphabet, the parent of Google, which many assumed was a move made solely by the new management at Berkshire.
Buffett considers Alphabet a key investment
Buffett’s renewed focus on Alphabet highlights their growing position, which started back in the third quarter of 2025.
As of September 30, they had amassed nearly 17.85 million shares valued at about $4.93 billion.
Investments seem to be accelerating. The latest reports indicate that Berkshire bought an additional 36.4 million Class A shares in early 2026.
Buffett’s decision-making mirrors decades of investment strategy: acquiring solid companies at reasonable prices without undermining their financial health.
He emphasizes that investing in quality companies—those capable of high returns on capital—remains crucial.
In terms of potential, he pointed out that Alphabet’s investments in A.I. could pay off but also acknowledged the underlying risks associated with it.
Despite the promise of A.I., he remains cautious, fearing that it might amplify certain risks in business operations.
Buffett described A.I. as possessing huge potential—both beneficial and harmful—but emphasized that for now, companies need to invest heavily to stay competitive.
In conclusion, while Buffett’s historic philosophy leans toward safety and prudence, he’s also stepping outside his comfort zone with bold investments in tech companies.
