5 Principles Warren Buffett Uses to Build Wealth

Berkshire Hathaway has substantially boosted its investment in Alphabet, the parent company of Google and YouTube, making it the conglomerate's third-largest stock holding. The company increased its Alphabet shares by 83% in the second quarter of 2026, holding nearly 106 million shares valued at approximately $37.8 billion as of June 30.

This significant investment, which follows Apple and American Express in Berkshire's portfolio, was reportedly initiated by Warren Buffett himself. Buffett, who transitioned to chairman after Greg Abel took over as CEO of Berkshire in late 2025, stated in July 2026 that the Alphabet investment was his idea. Berkshire began building its position in the Google parent company in the third quarter of 2025.

Buffett and Abel continue to consult on capital allocation for Berkshire. The investment underscores Buffett's enduring strategy: identifying value, exercising patience, and investing in assets with strong long-term potential. These principles have guided his investment journey for decades.

Beyond large-scale investments, Buffett's advice offers practical financial guidance. He consistently emphasizes the importance of eliminating high-interest debt before pursuing investment gains. In a 2020 virtual meeting, Buffett advised a woman with high-interest credit card debt to prioritize paying it off, stating he didn't know how to consistently earn an 18% return to justify carrying such debt. His message remains clear: avoid letting high consumer debt interest erode wealth while chasing investment returns.

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If I had debt with 18 percent interest, the first thing I would do with any money is pay off that debt.