How Warren Buffett Quietly Invested In Alphabet and Shopify Before Their Stock Splits

There has been something of a cottage industry this year in speculating whether or not Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Shopify (NYSE: SHOP) were good picks to buy before their respective stock splits. Alphabet's share price is now below the level it was prior to its stock split, while Shopify's price is up somewhat. But those moves don't seem to be related to the splits at all.

We now know that one prominent investor indirectly gained stakes in both stocks earlier this year. Here's how Warren Buffett quietly invested in both Alphabet and Shopify well before their stock splits.

Buying a baby

You're not going to find either Alphabet or Shopify on any 13-F filings for Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), the company in which most of Buffett's net worth resides. You won't find any public comments or disclosures from Buffett himself about purchases of the two growth stocks, either.

However, Buffett indeed does indirectly own positions in Alphabet and Shopify now. How? Berkshire bought a 3.1% stake in Markel (NYSE: MKL) in the first quarter of 2022. And Markel owns shares of both Alphabet and Shopify.

Markel has been referred to as a baby Berkshire for good reason. Like Berkshire, it generates a lot of float from its insurance business. Markel focuses on the specialty insurance market, providing insurance to customers who typically can't get traditional insurance.