logo
Warren Buffett's hidden quantum play: Berkshire Hathaway's bet on Alphabet and Microsoft's next big frontier

Warren Buffett's hidden quantum play: Berkshire Hathaway's bet on Alphabet and Microsoft's next big frontier

Economic Times19 hours ago
Warren Buffett may have built his legacy backing railroads, banks, and consumer giants, but buried in a lesser-known corner of Berkshire Hathaway's empire lies an unexpected wager on the bleeding edge of technology: quantum computing. Through a quiet $616 million portfolio managed by a subsidiary investment firm, Buffett is indirectly betting on Alphabet and Microsoft, two tech titans investing heavily in quantum breakthroughs that could redefine computing, accelerate AI, and reshape entire industries.
ADVERTISEMENT While Berkshire Hathaway's closely watched $292 billion stock portfolio is detailed each quarter in its public 13F filings, few investors pay attention to another vehicle within the conglomerate: New England Asset Management (NEAM), a specialty investment firm acquired in 1998 as part of Berkshire's $22 billion all-stock takeover of General Re.
Though Buffett does not directly manage NEAM's day-to-day trades, the firm is a wholly owned subsidiary of Berkshire Hathaway, making its holdings a lesser-known extension of Buffett's empire. As of March 2025, NEAM managed Rs 5,280 crore ($616 million) in assets, with 122 individual securities disclosed in its latest 13F filing.
Among the usual mix of exchange-traded funds and blue-chip names, two holdings stand out: Alphabet and Microsoft, companies with multibillion-dollar ambitions in quantum computing.NEAM held 5,195 Class A shares of Alphabet at the end of March, extending Berkshire's indirect exposure to one of Silicon Valley's most aggressive research pipelines.
ADVERTISEMENT Alphabet, already dominant in internet search and digital advertising, has been making strides in quantum computing through its experimental Willow chip. Introduced in December 2024, Willow has demonstrated the ability to reduce errors as it scales and has reportedly performed calculations in minutes that would take traditional supercomputers '10 septillion' years to complete, according to the company.While still far from commercialization, Willow represents Alphabet's commitment to pushing the frontier of computing. With over Rs 95 billion in cash and marketable securities and Rs 36 billion in net operating cash flow generated in just the first quarter of 2025, Alphabet has both the capital and the cushion to invest aggressively in long-horizon technologies.
ADVERTISEMENT Buffett's quantum computing bet doesn't end with Google. NEAM also held 4,530 shares of Microsoft (MSFT) as of March, giving Berkshire indirect exposure to another heavyweight racing toward quantum advantage.Microsoft is integrating its Majorana 1 quantum processing unit into Azure Quantum, a cloud-based platform that enables users to develop and run quantum algorithms. The company believes the scalability and speed of its quantum platform could significantly advance research and problem-solving in fields where classical computers fall short.
ADVERTISEMENT For now, quantum computing remains a nascent effort within Microsoft's sprawling business. But with nearly Rs 80 billion in cash reserves and Rs 93 billion in cash generated over the nine months ending March 31, the company has ample resources to pursue long-term innovation without sacrificing near-term performance.Buffett has long been skeptical of speculative tech ventures, famously avoiding most of the dot-com boom and approaching artificial intelligence with caution. But NEAM's exposure to Alphabet and Microsoft's quantum projects reflects a subtler, more patient approach to disruptive innovation—backing companies with proven business models, fortress balance sheets, and the financial flexibility to take calculated bets on transformational technologies.
ADVERTISEMENT Quantum computing may still be years away from commercial viability. Yet by quietly backing two of its most credible developers, Buffett is positioning Berkshire Hathaway, and its shareholders for long-term upside in one of the most ambitious technology revolutions of our time.
Also read | Warren Buffett's billion-dollar EV play backed BYD, so why not Tesla?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Empowered rural women drive change in Vizianagaram
Empowered rural women drive change in Vizianagaram

New Indian Express

time27 minutes ago

  • New Indian Express

Empowered rural women drive change in Vizianagaram

The awards were presented to the two MMFs on August 15 in New Delhi, with Gantyada MMF receiving a cash prize of Rs 3 lakh and Rajam MMF receiving Rs 1 lakh. Women in these areas have improved and established themselves as organized societies known as Self Help Groups (SHGs) by providing financial and fiscal services, skill training, production of eco-friendly goods, and linkage of market facilities. Gantyada MMF has been selected as the state-level best MMF for three consecutive years, including 2024, when it received the nationwide top and best society award. The dedicated work of every member of the Gantyada and Rajam mandals CLF/SHGs satisfied the parameters fixed for the selection of the 'Atmanirbhar Sangathan Puraskar-2024.' Apart from financial and fiscal services, the two MMFs are creating awareness among women and children at the village level on various social and legal issues. Minister for MSME, SERP, NRI Relations, and Empowerment, Kondapalli Srinivas, praised the achievement, stating that it is a sign of sustainable development in rural areas. SHGs, MMFs District Project Manager, A Chiranjivi, attributed the success to the collective work of the women. At the same time, the MMF presidents for Rajam and Gantyada, D Bhavani and K Anasuya, expressed their dedication to eradicating poverty, unemployment, and underemployment.

India's life insurance industry to grow at 10-12 pc over 3-5 yrs
India's life insurance industry to grow at 10-12 pc over 3-5 yrs

Hans India

time27 minutes ago

  • Hans India

India's life insurance industry to grow at 10-12 pc over 3-5 yrs

The Indian life insurance industry registered new business premiums of Rs 41,117.1 crore in June amid the ongoing impact of the revised surrender value regulations, lower credit life sales, and group single premiums, according to a new report. CareEdge Ratings expects the life insurance industry to continue to grow at 10 per cent-12 per cent over a three-to-five-year horizon, driven by product innovation along with supportive regulations, rapid digitalisation, effective distribution, and improving customer services. In June, the annual premium equivalent (APE) rose by 2.5 per cent, a slower growth rate compared to the 20.0 per cent increase in the same period last year. In APE terms, the industry grew at an 11.0 per cent compounded annual growth rate (CAGR) between June 2023 and June 2025. During this period, private insurers grew at 15.4 per cent, according to the report. 'The first quarter is typically a slow period for the life insurance sector, as it follows the fiscal year-end when most retail customers have already purchased policies in a last-minute rush,' said Saurabh Bhalerao, Associate Director, CareEdge Ratings. In Q1 FY26, the quarter-on-quarter growth has increased by 4.3 per cent compared to 22.9 per cent growth in the same quarter a year ago, mainly because of muted consumer demand and the impact of revised surrender value guidelines, which were effective October 1, 2024.

ED attaches Rs 762.47 crore immovable assets in money laundering case
ED attaches Rs 762.47 crore immovable assets in money laundering case

India Gazette

time35 minutes ago

  • India Gazette

ED attaches Rs 762.47 crore immovable assets in money laundering case

New Delhi [India], July 13 (ANI): The Enforcement Directorate (ED) has attached immovable properties valued at Rs 762.47 crore in connection with Rs 48,000 crore ponzi scheme case involving PACL Ltd, its directors, promoters, and associated entities, the agency said on Saturday. The properties, spread across Punjab, Haryana, Delhi, Maharashtra, and even Australia, have been seized under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, said the ED in a statement. ED's Delhi zonal office took the action based on its investigation initiated following First Information Report (FIR) registered by the Central Bureau of Investigation under Sections 120-B and 420 of the Indian Penal Code (IPC), against PACL Ltd., PGF Limited, Late Nirmal Singh Bhangoo, and others. ED further said that the case pertains to large-scale fraudulent collective investment schemes by PACL that were structured to deceive and defraud investors. 'Through these deceptive schemes, the PACL, through its directors and others, collected and misappropriated around Rs 48,000 crore from unsuspecting investors, which is nothing but Proceeds Of Crime (POC),' said the federal agency. ED investigation revealed that the 'funds fraudulently collected from lakhs of gullible investors were systematically diverted and layered through multiple transactions to conceal their illicit origins. 'These tainted funds were ultimately utilized to acquire 68 immovable properties having current market value of Rs 762.47 crore (approximately) in the names of Late Nirmal Singh Bhangoo (one of the promoters of PACL), his family members, and entities related to PACL' said the ED. As per the ED, this was deliberately done to disguise the true nature of these assets and project them as legitimate properties, thereby attempting to mask the POC as lawful assets. (ANI)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store