Berkshire Hathaway's recent 13F filing reveals a fascinating insight into the investment strategies of the new CEO, Greg Abel, in the absence of the legendary Warren Buffett. The conglomerate's purchases in the first quarter of 2026 offer a glimpse into Abel's approach, and one particular stock stands out as a strategic gem. In my opinion, the best investment made by Berkshire Hathaway in Q1 is the addition of shares in Alphabet, the parent company of Google.
The Alphabet Advantage
What makes Alphabet such a compelling choice is its diverse and forward-thinking portfolio. As a leader in artificial intelligence (AI), Alphabet is poised to benefit from the transformative power of AI across various sectors. Google Cloud, for instance, is a rapidly growing cloud service provider, and Google Gemini, one of the most advanced AI models, further solidifies Alphabet's position in the AI landscape. The demand for Alphabet's Tensor Processing Units (TPUs) is a testament to its technological prowess, as the company now sells these units to external customers.
Moreover, Alphabet's Waymo division is at the forefront of autonomous ride-hailing, and its Google Quantum AI is pushing the boundaries of quantum computing. The healthcare sector also benefits from Alphabet's innovations through Verily and Calico, which are revolutionizing healthcare and longevity research, respectively.
A Strategic Move
The fact that Berkshire Hathaway increased its stake in Alphabet, especially with the addition of Class C shares, is a strategic move. While Buffett might not have a direct interest in Alphabet's cloud business, his value investing philosophy is evident in this decision. Alphabet's strong market position and diverse revenue streams make it an attractive long-term investment, despite its relatively higher valuation compared to other stocks.
The New York Times Company: A Digital Success Story
Another notable purchase was the significant increase in Berkshire's stake in The New York Times Company. This move can be attributed to the company's successful digital initiatives. The New York Times Company's digital advertising revenue growth of 24.9% year over year in the fourth quarter of 2025 highlights its ability to adapt and thrive in the digital age. This investment showcases Abel's understanding of the media industry's evolution and the potential for traditional media companies to reinvent themselves.
In conclusion, while Berkshire Hathaway's Q1 purchases were strategic, the addition of Alphabet shares stands out as a forward-thinking and innovative investment. Abel's leadership and Buffett's influence have resulted in a diverse and well-positioned portfolio, making Alphabet a top choice for investors looking towards the future.
