Warren Buffett’s Berkshire Hathaway shocked investors with a multibillion-dollar stake in Alphabet, Google’s parent company. The move follows a 50% rally in Google stock this year. Berkshire’s decision, despite Buffett’s aversion to growth stocks, signals Alphabet may be fairly valued or even inexpensive.

Berkshire Hathaway acquired 18 million Alphabet shares worth $4.3 billion in the third quarter, making it the conglomerate’s 10th-largest holding. The purchase likely came from portfolio managers Todd Combs or Ted Weschler, who have successfully pushed Berkshire into tech investments in recent years.

Buffett’s endorsement of Alphabet adds credibility to Google’s AI narrative and signifies confidence in tech. The move also marks a late-career redemption for Buffett, who publicly admitted to missing out on Google early. Analysts see this as a hint of Berkshire’s future post-Buffett, more aligned with Silicon Valley and AI.

While Berkshire Hathaway increased its stake in Alphabet, it continues to trim other tech holdings, including a 15% cut to its Apple position. Despite this, Apple remains Berkshire’s largest investment.

Read more at Yahoo Finance: Warren Buffett’s Berkshire Hathaway buys Google stock for first time