Warren Buffett has expressed confidence that shares of Alphabet could outperform 90% to 95% of the stocks that Wall Street analysts typically endorse. This assertion came during his appearance on CNBC’s Squawk Box, where he discussed his views on the tech giant's potential.

In the wake of his comments, Alphabet (GOOGL) saw its shares rise by 3.65%, reaching $370.82. This spike boosted the value of Berkshire Hathaway's holdings to over $31 billion, solidifying Alphabet's position as one of Berkshire's largest investments, trailing only behind Apple and American Express.

Buffett clarified misconceptions surrounding the initiation of Berkshire’s investment in Alphabet, affirming, “I initiated it,” when questioned about the decision-making process. Despite recent leadership changes with Greg Abel stepping in as CEO, Buffett confirmed their daily communication to shape the firm’s investment strategies, including discussions on artificial intelligence during Berkshire’s shareholder meeting.

Berkshire began acquiring stakes in Alphabet in the third quarter of 2025, ramping up its investment into early 2026, including a $10 billion infusion linked to Alphabet’s ambitious AI fundraising initiative. The investment specifics indicated that Berkshire paid $351.81 for Class A shares and $348.20 for Class C shares.

Reflecting on his past, Buffett acknowledged that he had underestimated Google for years and regretted not investing earlier when the company was valued much lower. He characterized Alphabet's capital expenditures, projected at $180 to $190 billion this year, as “real money,” highlighting the tech firm's commitment to artificial intelligence.

Alphabet's financial health is evidenced by its recent results, with first-quarter revenues climbing 22% to $110 billion, driven by a 63% surge in Google Cloud revenue, alongside an impressive $174 billion in operating cash flow over the last year. “The chances of a company like this being a winner are higher than probably 90% or even 95% of everything Wall Street puts out there,” Buffett remarked, pointing out the often short-sighted focus of Wall Street analysts on quarterly results rather than sustainable growth.

While Buffett remains optimistic about Alphabet, he noted that there are four or five other businesses within Berkshire's portfolio that he finds even more appealing. His insights hold significant weight, especially considering Berkshire’s successful history with investments like Apple, which began in 2016.

This material is for informational purposes only and does not constitute financial advice.