Warren Buffett Watched Alphabet's Stock Price Climb 9,000% Before He Decided to Invest. Here's Why He and Greg Abel Are Making It One of Berkshire Hathaway's Biggest Investments Now.

Warren Buffett admitted to missing out on a 9,000% gain by not investing in Alphabet earlier, citing his historical avoidance of IPOs and tech stocks. However, he and CEO Greg Abel have now made Alphabet one of Berkshire Hathaway's largest investments, beginning in Q3 2025. Buffett is impressed by Alphabet's massive $200 billion capital expenditure on AI data centers, which Google Cloud CEO Thomas Kurian says have payback periods under two years, translating to roughly 20% annualized returns. With the stock trading at less than 17 times forward earnings, further purchases are expected.