Key facts
- Berkshire Hathaway increased its Alphabet stake by 83% in the second quarter.
- Alphabet is now Berkshire Hathaway's third-largest stock holding.
- The conglomerate holds approximately 106 million Alphabet shares, valued at nearly $38 billion as of June 30.
- Berkshire Hathaway made net stock purchases of $20 billion in the second quarter, its largest outlay since 2022.
- Berkshire Hathaway's cash pile decreased to $365 billion from a record $380 billion.
Berkshire Hathaway significantly increased its investment in Alphabet during the second quarter, boosting its stake by 83% to approximately 106 million shares. This strategic move positions Alphabet as the conglomerate's third-largest stock holding, valued at nearly $38 billion as of June 30.
The substantial increase in Alphabet shares was part of Berkshire's busiest quarter for stock buying in years. The company made net stock purchases totaling $20 billion, marking its largest quarterly outlay since 2022. This activity also led to a reduction in Berkshire's cash pile, which decreased from a record $380 billion to $365 billion.
Greg Abel, who assumed the CEO role from Warren Buffett at the beginning of the year, oversaw this significant expansion of the Alphabet position. Notably, Berkshire also agreed to purchase $10 billion worth of Alphabet stock in a private placement at a discount in June, in addition to buying 19.6 million shares on the open market.
This investment in Alphabet, a major technology company, is noteworthy given Buffett's historical preference for value stocks and his general caution towards the tech sector, with Apple being a notable exception. The move suggests a potential shift or expansion in Berkshire's investment strategy under new leadership.
In addition to Alphabet, Berkshire also increased its stake in Delta Air Lines by 44%, adding to its holdings in other companies like Lennar and Macy's. Conversely, the conglomerate reduced its positions in Bank of America and Kroger, and closed a small investment in Constellation Brands.