Legendary investor Warren Buffett made a bold statement: in his opinion, Alphabet (GOOGL) shares have the potential to outperform 90% to 95% of all assets currently recommended by Wall Street analysts. This statement was made during his interview on the morning show Squawk Box.

The market reacted instantly to Buffett's words. Alphabet's stock price surged by 3.65%, reaching $370.36 per share. As a result, the value of the securities portfolio managed by Berkshire Hathaway exceeded $31 billion. Currently, the tech giant trails only Apple and American Express shares in the fund's investment portfolio.

Buffett's Personal Decision

For a long time, rumors circulated that the purchase of Alphabet shares was an initiative of Berkshire's new CEO, Greg Abel. However, Buffett dispelled these doubts with a single phrase. When asked by host Becky Quick, he replied succinctly: "I initiated it." He clarified that the final decision rests with Abel, and they coordinate all steps daily.

The position in Alphabet was built gradually. Berkshire began purchases in the third quarter of 2025 and increased its stake through early 2026. In June, the company acquired an additional $10 billion in shares through a private deal linked to Alphabet's massive $80 billion fundraising for artificial intelligence development.

According to Alphabet's SEC filings, Berkshire paid $351.81 per Class A share and $348.20 per Class C share. Along the way, Buffett acknowledged past miscalculations: he regrets long ignoring Google when the search engine business was worth significantly less.

Billions in AI Spending Is "Real Money"

The head of Berkshire openly discusses the associated risks. Alphabet plans to allocate approximately $180–190 billion in capital expenditures this year alone, and experts expect this budget to grow in 2027. Buffett emphasized that such investments far surpass the spending of the largest railroad networks and respectfully characterized them as "real money."

The corporation's financial reports clearly confirm its strength. In the first quarter, Alphabet's revenue grew by 22%, reaching $110 billion. Simultaneously, Google Cloud's revenue surged by 63%. The tech giant's operating cash flow over the past twelve months amounted to an impressive $174 billion.

"...the chances of such a company becoming a winner are higher than, probably, 90% or even 95% of everything Wall Street promotes. After all, Wall Street is interested in what can be sold," Buffett said on air.

Of course, such a high assessment came with important caveats. The legendary investor admitted that within Berkshire Hathaway itself, there are four or five subsidiaries he likes much more. Speculators and stock analysts also faced criticism from the speaker: in his view, experts are overly focused on short-term quarterly results instead of evaluating long-term business profitability.

My analysis: Buffett's statement is not just another forecast but a signal of shifting priorities for Berkshire. If his previous bet on Apple in 2016 brought record profits to the holding, now the "Oracle of Omaha" is making a similar move with Alphabet. Given the company's inclusion in the Dow Jones Industrial Average and the flow of capital from major funds into the tech sector amid the crypto market downturn, this step appears strategically sound. Investors should closely monitor developments: Buffett rarely errs on long-term trends.