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Berkshire Hathaway has built Alphabet (NASDAQ: GOOGL, GOOG) into its third-largest equity holding, and the case for that position centers on two data points: Google Cloud's 82% year-over-year revenue growth in the second quarter of 2026, and more than $242 billion in liquidity on the balance sheet, up from $127 billion a year earlier.
The complication is what it cost to get there.
Alphabet has said it plans to spend between $195 billion and $205 billion on capital expenditures this year, mostly on AI data center infrastructure, pushing long-term debt from $46.5 billion at the end of June 2025 to around $123 billion.
Warren Buffett, who retired as Berkshire's chief executive at the end of 2025 and handed the role to Greg Abel, initiated the original Alphabet position.
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