Billionaire Warren Buffett Bought Just One New Stock — the Cheapest of the Magnificent Seven

Billionaire Warren Buffett Bought Just One New Stock

Warren Buffett, the famous billionaire investor and CEO of Berkshire Hathaway, made only one new stock purchase in the third quarter of 2025.

This single buy stood out because the stock was the cheapest among the so-called “Magnificent Seven”, a group of seven powerful and profitable tech companies.

About the “Magnificent Seven” Stocks

The “Magnificent Seven” refers to seven large U.S. tech stocks famous for their market power and growth. These stocks have driven much of the stock market’s gains in recent years. The group includes:

  • Apple
  • Microsoft
  • Alphabet (Google)
  • Amazon
  • Nvidia
  • Tesla
  • Meta Platforms

Buffett’s purchase of Alphabet, the cheapest in this group quarter, suggests confidence that the company can keep growing despite recent market pullbacks. These companies are often watched closely by investors for signs of tech sector health.

Buffett’s Unique Move in Q3 2025

In the third quarter of 2025, Warren Buffett’s investment company, Berkshire Hathaway, bought just one new stock. This is unusual for such a large and active investor, showing Buffett’s cautious approach to the market right now.

The one stock Buffett chose to buy was Alphabet, the parent company of Google. Berkshire Hathaway invested about $4 billion in Alphabet, making it one of the top 10 holdings in Buffett’s portfolio.

Why Alphabet?

Alphabet is part of the “Magnificent Seven,” a popular name for seven big technology companies known for strong growth and influence. These seven include Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta Platforms.

Among these, Alphabet was the cheapest in price when Buffett bought it. Buffett is famous for searching for good value investments, companies that are strong but trading for less than their true worth.

He considers Alphabet to be a quality company with a lot of potential, despite the tech sector’s usual volatility which Buffett often avoids. This investment is seen by some as a rare tech bet from the legendary investor, who usually prefers more traditional industries.

Buffett’s Selling in Other Stocks

While Buffett bought Alphabet, he also sold shares in some other big companies during the quarter. Notably, Berkshire Hathaway reduced its holdings in Apple and Bank of America.

These companies remain important to Buffett but he is carefully trimming his investments there. Berkshire also completely sold off its position in D.R. Horton, a homebuilding company.

Overall, during the third quarter, Buffett’s firm sold more shares than it bought. This cautious approach may reflect Buffett’s strategy to protect capital during uncertain economic times. Even as Buffett cuts back in some places, Alphabet is a big new bet on future growth.

What This Means for Investors

Buffett’s move highlights a few important points for regular investors:

  • Even the richest and wisest investors buy carefully and sometimes make only a single big purchase in a quarter.
  • Buying the “cheapest” stock among top tech companies can be a smart way to invest in a strong trend without overpaying.
  • Trimming stocks like Apple and Bank of America while buying Alphabet shows Buffett’s attention to value and timing in his portfolio.

This action reinforces that Buffett looks for long-term quality and price value, not just popular or trendy stocks. His purchases and sales provide insights into what he sees as opportunities or risks in the market today.

This move shows Buffett’s cautious but optimistic approach to investing in strong tech stocks that offer good value. While trimming other large holdings, Buffett’s big bet on Alphabet is notable for investors looking to understand where one of the world’s best investors is placing his money today.

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