Greg Abel, Warren Buffett’s successor at Berkshire Hathaway, is making a clear long-term bet on Alphabet. The move has already worked in Berkshire’s favor, with Alphabet shares roughly doubling over the past 12 months.
Last month, Alphabet announced an $80 billion equity capital raise to support its aggressive AI ambitions, including a $10 billion private placement with Berkshire Hathaway. Berkshire first initiated a position in Alphabet in the third quarter of 2025 and then added more shares in the first quarter of 2026, making the company one of its largest holdings.
Why Alphabet still looks like a long-term winner
Alphabet remains strong across several major businesses. Google dominates digital advertising, YouTube is a major force in streaming, and Google Cloud is one of the three biggest players in that market.
The company also still has room to grow in each of those areas. Digital advertising continues to benefit from the shift to online commerce, while Google’s search engine keeps a wide moat because more usage feeds more data back into the system and helps improve results.
| Alphabet Business | Current Strength | Growth Driver |
|---|---|---|
| Google Search | Wide moat from network effects | More usage improves data and search quality |
| YouTube | Top player in streaming | Ongoing audience and ad growth |
| Google Cloud | One of the Big Three in cloud | Growing faster than the rest of the business |
AI has not disrupted Alphabet’s search business the way some feared. Instead, the company has improved search with AI, and its cloud segment is also getting a lift from the technology.
More than one growth engine
Beyond its core businesses, Alphabet has a track record of innovation that could open up new opportunities later on. Its self-driving vehicle efforts and other bets segment give it additional upside if those projects keep advancing.
That combination of a durable core business, strong competitive advantages, and multiple growth paths is what makes Alphabet look like a classic long-term holding. It also explains why Berkshire keeps adding to the position.
What investors are being reminded to weigh
Before buying Alphabet, investors are being pointed toward another message from The Motley Fool’s Stock Advisor: Alphabet was not among the 10 best stocks the analyst team recently identified for investors to buy now. The service says those 10 picks are built for long-term growth and could deliver strong returns in the years ahead.
The same service points to past winners such as Netflix and Nvidia, saying a $1,000 investment in Netflix at the time of its recommendation would now be worth $418,761, while the same amount in Nvidia would now be worth $1,195,804. It also says Stock Advisor has beaten the S&P 500 by 4x.
For Berkshire, though, Alphabet remains a stock worth doubling down on. For investors, the real question is whether the company’s AI push, cloud momentum, and durable advertising business can keep turning that conviction into more gains.
