Warren Buffett, 94, has pulled the plug on Apple — and quietly bet big on Google. In the third quarter of 2025, Warren Buffett’s Berkshire Hathaway Inc. sold 41.8 million shares of Apple Inc., trimming its stake by nearly 15% and pocketing $9.44 billion. At the same time, it quietly bought 17.8 million shares of Alphabet Inc., Google’s parent company, for $4.3 billion — marking Buffett’s most significant tech bet since he first bought Apple in 2016. The moves, disclosed in a filing on October 28, 2025, aren’t just about selling high or buying low. They’re a signal. A quiet revolution in how the world’s most famous investor sees the future of technology — and his own legacy.
Why Apple? Why Now?
Buffett didn’t just sell. He sold *after* Apple’s stock had doubled since 2022, while revenue stayed flat. That’s the red flag. Using Benjamin Dodd’s model, Peter Lynch’s PEG ratio, and a basic Discounted Stock Model, Buffett’s team concluded Apple was trading at a premium — not because it was failing, but because the market had priced in perfection. And perfection, in Buffett’s world, rarely lasts. The stake, once representing 25% of Berkshire’s portfolio in early 2024, now sits under 15%. The gains? A staggering 440% on the original $11.9 billion cost basis. He didn’t miss the boat — he just decided to leave it before it hit the rocks."I blew it," Buffett admitted years ago, referring to missing Google’s early rise. He wasn’t talking about money. He was talking about opportunity. Berkshire’s Geico division had been a major advertiser on Google’s platform for over a decade. He saw the data. He saw the reach. But he didn’t buy the stock. "I didn’t understand it," he said. Now, he does.
The Google Gambit
Alphabet Inc. isn’t just a search engine anymore. Its data centers are humming with AI models. Its cloud division grew 22% year-over-year. Its advertising business — still the engine — is smarter, faster, more efficient. And it’s trading at 28 times forward earnings. Compare that to Tesla’s 70x, and the math becomes obvious: Alphabet is growing fast, without the frenzy. Buffett’s $4.3 billion purchase — executed between October 15 and 31, 2025 — isn’t a gamble. It’s a correction. A belated nod to a company he should have owned a decade ago.For the first time since Apple, Buffett is putting serious capital into a pure-play tech company. And this time, he’s not just watching from the sidelines. He’s wading in — deep.
Behind the Scenes: The Transition
Buffett won’t be CEO after December 31, 2025. Greg Abel, 62, the man slated to take over, has been quietly reshaping Berkshire’s investment strategy for over a year. Abel, who oversees operations from Omaha, Nebraska, didn’t just inherit Buffett’s portfolio — he inherited his reputation. And now, he’s starting to make his own mark. The Alphabet purchase? Analysts at Real Investment Advice say it’s Abel’s doing. "Buffett’s instincts are legendary," said Chief Investment Officer James Picerno. "But Abel’s been reading the AI playbook. This isn’t a Buffett move. It’s an Abel move — with Buffett’s blessing."The timing is no accident. With Buffett stepping down, Berkshire is preparing for a new era. One where value investing doesn’t mean avoiding tech — it means picking the right tech. The $382 billion cash pile? That’s not hoarding. It’s ammunition. For what comes next.
What This Means for Investors
Buffett didn’t abandon Apple because it’s dying. He sold because its growth story is maturing — and its valuation no longer offers a margin of safety. Meanwhile, Alphabet’s AI-driven growth is just beginning. Its revenue hit $307 billion in 2024 — less than Apple’s $383 billion — but its profit margins are tighter, its innovation cycle faster. And unlike Tesla, which trades like a speculative bet, Alphabet is a cash cow with rocket fuel.There’s a pattern here. Buffett’s career has been built on buying when others fear, selling when others greed. In 2008, he bought Goldman Sachs. In 2016, he bought Apple. Now, in 2025, he’s buying Google. Each time, he waited for the moment the market got scared — or confused — and then moved.
This isn’t about tech. It’s about discipline. It’s about patience. It’s about knowing when to let go — and when to double down.
What’s Next?
The market is watching. If Alphabet continues its 46% year-to-date climb, Berkshire’s new position could become its fifth-largest holding within a year. And if Apple’s growth slows further — as some analysts predict — the $9.4 billion cash could be redeployed into other undervalued giants: Microsoft? Oracle? Even Amazon?One thing’s clear: Buffett’s final act as CEO won’t be remembered for what he held — but for what he let go of, and what he chose to embrace instead.
Frequently Asked Questions
Why did Warren Buffett sell so much Apple stock?
Buffett’s team concluded Apple’s stock had outpaced its revenue growth, trading at a premium valuation. Using multiple valuation models, including PEG and Discounted Stock Model, they determined the stock no longer offered a sufficient margin of safety — despite its strong fundamentals. The sale locked in a 440% gain on the original investment, turning $11.9 billion into over $60 billion.
Why is Alphabet now a key holding for Berkshire Hathaway?
Alphabet’s AI-driven cloud and advertising growth, combined with its 28x forward P/E — far below Tesla’s 70x — made it a rare tech stock that balances innovation with profitability. Berkshire’s $4.3 billion stake, its 10th-largest holding, reflects a strategic pivot toward companies with scalable AI infrastructure, not just consumer gadgets.
Is this the end of Buffett’s love affair with Apple?
Not necessarily. Berkshire still holds over 535 million Apple shares — worth roughly $120 billion. This isn’t a full exit, but a significant trimming. Buffett has always believed in holding quality businesses. Apple remains one — but at a reduced weight, as part of a more diversified portfolio.
How much influence did Greg Abel have in this decision?
Analysts believe Abel, set to become CEO on December 31, 2025, played a central role. Buffett, 94, has delegated more investment authority to Abel over the past two years. The timing of the Alphabet purchase — in late October — coincides with Abel’s growing control over portfolio strategy, suggesting this was a transition-driven move, not just a personal one.
What does this mean for individual investors?
It’s a reminder that even the best companies can become overvalued. Buffett’s move shows that valuation discipline matters more than brand loyalty. Investors should ask: Is growth still accelerating, or is it priced in? Alphabet’s lower multiple and AI momentum may offer better risk-adjusted returns than Apple’s plateauing sales.
What’s the significance of Berkshire’s $382 billion cash reserve?
It’s the largest in Berkshire’s 60-year history — and it’s intentional. With markets volatile and interest rates uncertain, Buffett and Abel are keeping powder dry. This isn’t caution — it’s preparation. They’re waiting for the next big opportunity, whether it’s another tech buy, a distressed acquisition, or a market crash that offers bargain prices.
