Why Buffett’s Portfolio Backs These 3 Quantum Stocks—And Should You Follow Suit?
Discover why Warren Buffett indirectly owns stakes in Alphabet, IBM, and Microsoft—and what really drives their long-term growth.
Buffett’s Quantum Paradox
Warren Buffett famously avoids businesses he can’t understand, yet he indirectly holds quantum computing positions.
- He invests through New England Asset Management, a Berkshire subsidiary.
- His approach underscores the power of networked portfolios over single-company bets.
Alphabet via NEAM
Buffett doesn’t list Alphabet in Berkshire’s filings, but NEAM owns shares in Google’s parent.
- Google Quantum AI achieved quantum supremacy in 2019 and advanced error correction in 2023.
- The company recently unveiled its 72-qubit “Bristlecone” successor and is integrating quantum into Google Cloud.
IBM’s Fault-Tolerant Ambitions
NEAM also holds over 20,000 shares of IBM, which has pursued quantum since 2016.
- IBM rolled out its 433-qubit “Osprey” processor in 2023, aiming for logical-qubit error-corrected systems by 2030.
- It formed the Quantum Security Alliance in 2024 to develop quantum-resistant cryptography.
Microsoft’s Majorana Leap
Through NEAM, Buffett owns Microsoft, which debuted its Majorana 1 quantum chip earlier this year.
- Majorana’s architecture targets industrial-scale problems in years, not decades.
- Azure Quantum now offers Honeywell Quantum Solutions and Quantinuum hardware access.
Beyond Quantum: Core Growth Engines
While quantum is a wildcard, these giants’ AI, cloud, and network effects drive their real value.
- Alphabet: Generative AI in Search and Waymo’s robotaxi trials.
- IBM: Hybrid-cloud growth via Red Hat and 30 years of dividend hikes.
- Microsoft: GPT-4 integration across Office and Azure’s market-leading cloud share.
Whether you grasp the physics or not, owning Alphabet, IBM, or Microsoft can offer exposure to quantum’s upside—plus robust, proven growth businesses.
