## Google’s Founders Admired Buffett, Now Buffett Owns Google
This article details a fascinating connection between Google and Warren Buffett, highlighting a long-standing mutual respect that has culminated in Berkshire Hathaway’s significant investment in Google’s parent company, Alphabet.
- **A Nod to Buffett’s Influence:** In Google’s 2004 IPO prospectus, founders Larry Page and Sergey Brin explicitly cited Warren Buffett as a major influence, even titling their letter to shareholders “An Owner’s Manual” in a clear homage.
- **Berkshire’s Investment:** Over two decades later, Berkshire Hathaway revealed a $4.3 billion stake in Alphabet, making it one of the firm’s largest tech investments. This marks a significant shift for Berkshire, which has historically been cautious about high-growth tech companies.
- **Buffett’s Regret:** Buffett has previously expressed regret for not investing in Google earlier, particularly when Berkshire’s Geico subsidiary was spending heavily on Google advertising.
- **Alphabet’s Strong Performance:** Alphabet shares have surged, driven by growth in its cloud unit and AI services, and the company recently reported its first $100 billion revenue quarter.
- **Buffett’s Long-Term Perspective:** The article also highlights how Page and Brin, in their IPO prospectus, echoed Buffett’s emphasis on long-term value over short-term quarterly results, citing his philosophy of not “smoothing” earnings.
- **Dual-Class Stock Structure:** The founders also cited Berkshire Hathaway as an example of a company successfully using a dual-class stock structure, which gave them outsized voting control.
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