Berkshire Hathaway significantly increased its position in Alphabet, with its stake soaring from approximately $5.6 billion at the end of 2025 to nearly $37.8 billion by the end of the second quarter this year, making Alphabet one of Berkshire's largest holdings. This move comes as Wall Street analysts note Alphabet's return on invested capital (ROIC) has declined from over 58% in 2024 to an expected 38.3% this year, with further declines projected through 2029. The decline is attributed to Alphabet's substantial capital expenditures, estimated at $200 billion this year, for building AI infrastructure. Analysts are debating whether this trend aligns with Warren Buffett's cardinal rule of investing in businesses with high, long-term returns on capital.