Years after Warren Buffett and Charlie Munger lamented missing out on Google’s rise, Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) seems to be making up for lost time with another massive investment in Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL).
Buffett And Munger Once Called Missing Google A Major Mistake
At Berkshire Hathaway’s 2019 annual shareholder meeting, the investing duo admitted they failed to recognize one of the biggest opportunities in tech despite seeing evidence of Google’s strength firsthand.
Munger said he had little regret about missing Amazon.com Inc. (NASDAQ:AMZN) early on but viewed failing to recognize Google’s potential sooner as one of his biggest investing mistakes. Buffett agreed with the assessment.
The regret stemmed partly from Berkshire-owned insurer Geico’s experience using Google advertising. Buffett said the company could directly see how effective the ads were and how profitable the business model appeared.
“We saw it was working for us, and we just sat there sucking our thumbs,” Munger said.
Berkshire Deepens Alphabet Bet As AI Spending Accelerates
That long-standing regret now appears to be turning into conviction.
Alphabet announced Monday that Berkshire will invest an additional $10 billion through a private stock purchase, including $5 billion of Class A shares priced at $351.81 each and another $5 billion of Class C shares priced at $348.20.
The investment expands a position Berkshire has been building aggressively since first disclosing an Alphabet stake in the third quarter of 2025.
AI Infrastructure Becomes The New Battleground
Alphabet said the broader $80 billion stock sale will help fund capital expenditures tied to AI infrastructure expansion and growing computing demand.
In April, Alphabet reported quarterly earnings of $5.11 per share, significantly surpassing analysts’ consensus estimate of $2.62, exceeding expectations by more than 95%.
Price Action: Shares of Alphabet’s Class A closed Monday down 1.04% at $376.37, while Class C shares fell 1.02% to $372.58; both classes declined further in after-hours trading, according to Benzinga Pro.
Benzinga Edge Stock Rankings place GOOG in the 94th percentile for Quality, highlighting strong performance metrics across short, medium and long-term periods.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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