Warren Buffett made a multi-billion dollar investment in Alphabet, now the 13th largest in Berkshire Hathaway’s portfolio. The move coincided with the success of Alphabet’s new Search feature, AI Overview, attracting two billion monthly users. Despite previously admitting to missing out on Alphabet, Buffett eventually made the investment after seeing the company’s impressive growth.

Buffett’s decision to invest in Alphabet came after years of hesitation due to his lack of understanding of tech companies. The stock rose 559% from his initial interview in 2017 to the end of Q3 2025. The decision to invest in Alphabet may have been made by one of Buffett’s lieutenants at Berkshire, highlighting the company’s strong revenue growth and network effect.

Alphabet’s success is attributed to its network effect, with two billion monthly users driving revenue growth. The company’s ad revenue has grown annually since 2011, reaching $350 billion in 2024. The strength of Alphabet’s various segments, including Search and YouTube advertising, demonstrates its competitive edge and value as an investment.

Before buying stock in Alphabet, investors should consider other top stock picks identified by The Motley Fool Stock Advisor team. While Alphabet wasn’t on their list, the top 10 stocks recommended have the potential for significant returns. The success of previous stock picks like Netflix and Nvidia highlights the value of following expert recommendations for investment decisions.

Read more at Nasdaq: Why Warren Buffett Finally Bought Alphabet Shares