Berkshire Hathaway doubles Alphabet shares to $38 billion

Berkshire Hathaway has significantly expanded its stake in Alphabet. According to a portfolio disclosure, the company increased its position by 83% to approximately 106 million shares, worth more than $38 billion at the end of June. Alphabet is now Berkshire’s third largest US holding, after Apple ($66 billion) and American Express ($51 billion).

The expansion resulted from a combination of strategies. Berkshire had already agreed in June to buy $10 billion in shares at a reduced price, and on top of that bought another 19.6 million shares on the open market in the second quarter.

In brief:

• Berkshire Hathaway increased its Alphabet position by 83% to $38 billion in the second quarter
• This makes Alphabet the third largest US holding for the investment company
• The purchases took place under the leadership of new CEO Greg Abel

Largest share purchases in years

The past quarter marked a clear turning point for Berkshire. The company bought a net $20 billion more in shares than it sold, the highest amount since 2022. This brought an end to fourteen consecutive quarters in which Berkshire had been a net seller of shares.

The increase in purchases took place under the leadership of Greg Abel, who succeeded Warren Buffett as CEO at the start of the year. Although Buffett no longer has day-to-day leadership, he announced that he had personally approved the investment in Alphabet last year. The position therefore appears to stem from decisions made under both Buffett and Abel.

Greater focus on technology

The substantial position in Alphabet deviates from the approach for which Buffett was known for years. For much of his career, he was cautious about investing in technology companies. Apple ultimately became an important exception, while Berkshire for a long time also held major stakes in companies such as Coca-Cola and Geico.

Alphabet’s shares have risen by approximately 170% over the past three years. Investors expect that the parent company of Google can benefit from the rapid growth of artificial intelligence. In addition to the larger position in Alphabet, Berkshire also expanded its stake in Delta Air Lines by 44% to $5.4 billion.

Berkshire significantly adjusts portfolio

Berkshire also made changes elsewhere in the portfolio. The company reduced its positions in Capital One and Nucor, while it bought more shares of Lennar and Macy’s.

The purchases partly contributed to Berkshire’s cash position falling from a record of $380 billion to $365 billion in three months. This represents a clear change compared with the final years under Buffett, when Berkshire struggled to find sufficiently attractively valued shares and the amount of available cash kept rising.