The Billionaire's Unlikely Tech Bet: How Buffett Became Amazon's Major Stakeholder

Here’s something that might surprise you: Warren Buffett, the legendary investor once famous for dismissing tech stocks, now holds a massive stake in Amazon through his investment vehicle Berkshire Hathaway. The current position? A whopping 10 million shares worth approximately $1.8 billion, making Amazon the 17th largest holding in Berkshire’s publicly traded portfolio.

From Tech Skeptic to Amazon Bull

Rewind to the late 1990s. Buffett was the poster child for tech stock skepticism. During the dot-com craze, he vocally warned that most internet startups wouldn’t survive. This wasn’t just noise—his concerns reportedly influenced Amazon founder Jeff Bezos himself, spurring the young entrepreneur to fundamentally restructure how Amazon operated to prove the doubters wrong.

Fast forward over two decades, and the narrative has completely shifted. Amazon transformed into a $2.1 trillion market cap powerhouse, and Buffett himself evolved from tech critic to tech investor.

The Investment Nobody Expected

Here’s the plot twist: Berkshire Hathaway began accumulating Amazon stock in early 2019, and Buffett publicly admitted this wasn’t even his direct call. One of his portfolio managers—either Todd Combs or Ted Weschler—initiated the investment. In typical Buffett fashion, he quipped that he’d been “an idiot” for not making the move himself.

Since that initial entry, the math has worked beautifully. The original $860 million investment has more than doubled in value, now worth $1.8 billion. This stake represents 0.1% of Amazon’s total shares outstanding.

Playing It Smart With Exits

While Buffett’s camp has generally held steady on Amazon, they haven’t been rigid ideologues. Last summer, Berkshire trimmed its position by 550,000 shares, demonstrating a willingness to rebalance when conditions warrant. The majority of gains came from share price appreciation rather than aggressive additions.

The Buffett-Amazon partnership represents more than just a successful trade—it symbolizes how even the most conviction-driven investors adapt their thesis when the evidence demands it. From warning about tech’s demise to becoming a major shareholder, Buffett’s Amazon story is a masterclass in intellectual flexibility.