Why Google is making headlines in Berkshire’s biggest quarter of stock-buying following Warren Buffett’s exit as CEO
Berkshire Hathway has sharply increased its stake in Alphabet during its biggest quarter of stock buying in years. According to a report by Business Insider, under CEO Greg Abel, Berkshire boosted its holdings by 83% to about 106 million shares worth $38 billion at the end of June in Alphabet. The conglomerate agreed to purchase $10 billion worth of Alphabet stock at a discount in a private placement in June, and added another 19.6 million shares on the open market last quarter. Alphabet is now Berkshire’s third‑largest US holding, behind Apple ($66 billion) and American Express ($51 billion).
Warren Buffett ’s legacy and Abel’s role
The size of the Alphabet bet stands out given Buffett’s long-standing reluctance to invest heavily in technology stocks throughout most of his career, with Apple as the notable exception. He has historically preferred businesses like Coca-Cola and Geico over tech names. Even so, Buffett has said he personally made the call to invest in Alphabet last year, and with Abel now serving as CEO while Buffett remains chairman, the position appears to reflect shared decision-making between the two rather than a clean break from Buffett’s past preferences.Alphabet’s stock has climbed roughly 170% over the past three years, with investors continuing to bet that the search-and-advertising giant will emerge as one of the biggest beneficiaries of the ongoing AI boom.
Other portfolio changes
Alphabet wasn’t the only shift in Berkshire’s holdings last quarter. The firm boosted its stake in Delta Air Lines by 44%, bringing that position to $5.4 billion as of June 30. It also established a new stake in D.R. Horton and added significantly to its existing positions in Lennar and Macy’s.On the other side of the ledger, Berkshire roughly halved its stakes in Capital One and Nucor, trimmed its holdings in Bank of America and Kroger, and exited a smaller position in Constellation Brands entirely.
Cash deployment
The second‑quarter update showed Berkshire spent $23.5 billion on stocks while selling only $3.7 billion, ending 14 straight quarters as a net seller. It also executed $4.5 billion in buybacks, reducing its cash pile from $380 billion to $365 billion.
