Warren Buffett rarely offers reservations about a $2 trillion tech giant. That’s why his commentary on CNBC on July 15, 2026 caught our attention. The Berkshire Hathaway chairman revealed he personally initiated Berkshire’s Alphabet (NASDAQ: GOOGL) | GOOGL Price Predictionposition, a stake now worth more than $31 billion once you include a separate $10 billion private placement, then promptly explained why he still isn’t in love with it.
“I would say that I don’t like it as well as at least four or five other businesses that we own,” Buffett told CNBC. His concern was the sheer capital intensity of the AI arms race: “The real question with Google and all of its competitors now, because they’re all laying out hundreds of billions, and…that’s real money…That’s the game they’re playing now. They weren’t playing that game with computer software.”
Alphabet’s numbers back up his math. Management guided 2026 capital expenditures to $175 billion to $185 billion, and Q1 2026 capex alone hit $35.67 billion, more than double the prior year. The stock has responded well anyway, up 18.50% year to date and 102.05% over the past year. But which four or five businesses does Buffett prefer over Alphabet? Given Berkshire’s recent buying patterns and long-tenured positions, four candidates stand out.
American Express (AXP)
American Express (NYSE:AXP) is arguably Buffett’s most emotionally anchored position, dating to the 1960s Salad Oil Scandal. The premium spender franchise is executing: Q1 2026 delivered EPS of $4.28 on revenue of $18.91 billion, with billed business of $428.0 billion, up 10%. CEO Stephen Squeri highlighted “the highest quarterly [Card Member spending] growth in three years” in the earnings release. Trading at a 22 trailing P/E with a forward P/E of 20, Amex is a capital-light compounder, the opposite of the hyperscaler capex profile that worries Buffett about Alphabet.
Coca-Cola (KO)
Coca-Cola (NYSE:KO) is the archetypal Buffett business, held since 1988. Q1 2026 revenue rose 12.1% to $12.5 billion, with Coca-Cola Zero Sugar volume up 13% across every segment. Return on equity is a striking 43.4%, and 2025 marked the 63rd consecutive year of dividend increases. Shares have climbed 17.9% year to date. If readers want more Buffett-style compounders like this one, our 7 Warren Buffett Stocks report walks through the current Berkshire lineup worth studying.
Moody’s (MCO)
Moody’s (NYSE:MCO) is a duopoly toll booth Berkshire has held since the 2000 Dun & Bradstreet spinoff. Q1 2026 revenue rose 8.1% to $2.08 billion, and management called out “record Q1 Investment Grade issuance driven by AI-related financing from hyperscalers”. In an amusing twist, Moody’s is monetizing the very AI capex cycle that gives Buffett pause on Alphabet. Full-year adjusted EPS guidance sits near consensus at $16.40 to $17.00, and Moody’s raised its full-year buyback guidance to roughly $2.5 billion.
Occidental Petroleum (OXY)
Occidental Petroleum (NYSE:OXY) is Buffett’s most recent big conviction bet, dating to 2019. Berkshire owns roughly 28% of the common stock. Q1 2026 adjusted EPS came in at $1.06 versus $0.59 consensus, and Occidental repaid $7.1 billion in principal debt during the quarter. CEO Vicki Hollub described the portfolio as “the most resilient, competitive, and high-quality portfolio in our history” in the earnings release. Shares are up 32% year to date, easily outpacing Alphabet’s gain.
The Fifth Slot
Rounding out the list could easily be Apple, Bank of America, or Chevron, all of which remain among Berkshire’s largest disclosed positions. The common thread across Buffett’s preferred businesses is lasting pricing power and modest reinvestment needs, exactly what a hyperscaler shelling out $175 billion-plus a year cannot claim. Alphabet may still earn its keep in the Berkshire book, but the ranking above it is getting crowded.
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