Berkshire Hathaway has a $5.4 billion stake in Alphabet, up 62% in the past year. The company fits Buffett’s criteria with a wide economic moat and strong financials. It’s a leader in AI, making it a compelling investment choice. Buffett’s team likely made the decision, showing confidence in the business.

Alphabet passes Berkshire’s test for quality, with a wide economic moat and strong financial position. In 2025, it reported a 32% operating margin and $73 billion in free cash. Shares traded at a P/E ratio of 22.3 in Q3 2025, making it an attractive investment for Berkshire.

Alphabet is an AI superstar with 750 million monthly active users on Gemini app. Google Cloud revenue surged 48% in Q4. AI integration across popular apps drives engagement and ad revenue. The company plans $180 billion in capital expenditures in 2026 to expand AI infrastructure. Shares trade at a P/E of 27.8.

Consider investing in Alphabet cautiously. Despite Berkshire’s stake, it didn’t make the Motley Fool’s top 10 list. Other stocks have potential for higher returns. Stock Advisor has a history of market-crushing performance. Join the investing community for top stock picks and potential growth opportunities.

Read more at Nasdaq: 1 Unstoppable Artificial Intelligence (AI) Stock That Berkshire Hathaway Bought When Warren Buffett Was Still CEO