Buffett admits his mistake: not buying Google early was a big error! So far, it’s “more likely to become the winner”

Warren Buffett, nicknamed the “Oracle of Stocks,” rarely admits he’s wrong. On July 15, he told CNBC’s “Squawk Box” host Becky Quick in an interview that not investing in Google at the time was a mistake. Judging by Alphabet’s current financial results, he said the company is now “more likely to become the winner.” He also reaffirmed his bullish view of Berkshire Hathaway’s investment in Apple, and discussed that his successor, Greg Abel, is already the “decision-maker,” but that both men will not do things the other disagrees with.
(Background: Buffett waited six years before finally buying Google! He splashed $4.3 billion, and Alphabet became Berkshire Hathaway’s 10th-largest holding)
(Background detail: Farewell, Oracle! Buffett announced he will step down as Berkshire Hathaway CEO at the end of 2025, with Greg Abel taking over)

Key Takeaways

• On July 15, Buffett told CNBC in an interview that failing to invest in Google back then was a mistake, and that based on Alphabet’s current financials, it is “more likely to become the winner.”
• Buffett reiterated his positive view of Berkshire Hathaway’s investment in Apple; Apple remains Berkshire Hathaway’s largest single holding.
• Successor Greg Abel took over as CEO earlier this year and is now the “decision-maker,” but Buffett emphasized that both of them won’t do what the other disagrees with.

It’s uncommon for the Oracle to admit fault in Buffett’s case. On July 15, the chairman of Berkshire Hathaway told CNBC’s “Squawk Box” host Becky Quick that missing Google back then was a mistake, and that based on its current financial reports, the company is “more likely to become the winner.”

The weight of this statement comes from a chain of actions behind it. Over the past half year, under successor Greg Abel’s leadership, Berkshire Hathaway has made major purchases of Alphabet, steadily increasing its stake to among the company’s top five positions. Buffett’s admission is effectively a personal endorsement of Abel’s decision to bet on Google.

From missing out to “more likely to become the winner”

Both Buffett and his late long-time partner Charlie Munger have said publicly more than once that not buying Google earlier was one of their regrets. Buffett once said that his own insurance company GEICO was already a major customer of Google, and he should have understood its ability to generate profits sooner.

What’s different this time is that he went a step further, no longer just saying “I should have bought it back then,” but judging that Alphabet is “more likely to become the winner” based on its current operating performance.

Stick with Apple, Abel calls the shots but without forcing agreement

Buffett’s stance on his signature Apple investment holdings has not changed. He still likes the Apple stake Berkshire Hathaway holds, and it remains Berkshire Hathaway’s largest single holding.

As for the handover, Buffett was very clear. Greg Abel, who officially became CEO at the beginning of the year, is now the “decision-maker,” but this is not one-sided control. Buffett said that neither he nor Greg Abel will do things that the other disagrees with. Decision-making power is given to Abel, yet the two also retain veto power against each other. He also praised Abel for moving faster and more smoothly than he did, saying that getting one day’s worth of work done now is more than what he could do in a single week at the peak of his career.

Frequently Asked Questions

Why did Buffett say that not investing in Google was a mistake?

On July 15, Buffett said on CNBC that he should have understood its profit-making ability by looking at his own insurance company GEICO, which is a major customer of Google. Now, based on Alphabet’s financial performance, he judges that it is “more likely to become the winner.” Berkshire Hathaway has recently increased its stake in Alphabet substantially under Greg Abel’s leadership.

After Buffett retires, who will decide at Berkshire Hathaway?

Greg Abel officially took over as CEO at the beginning of the year and is currently the “decision-maker,” but Buffett emphasized that the two will not do what the other disagrees with—effectively mutual veto power. Buffett also praised Greg Abel for acting faster and more smoothly than he did.