What changed in the portfolio
Berkshire Hathaway said on August 15 it raised its investment in Alphabet by 83% in the second quarter, lifting holdings to nearly 106 million shares worth about $37.8 billion as of June 30, up from 57.8 million shares three months earlier. The new position makes the parent of Google and YouTube Berkshire's third-largest stock holding, behind Apple at roughly $66 billion and American Express at $51.3 billion, with Coca-Cola ranked fourth and Bank of America fifth. The increase reflected the $10 billion investment in Alphabet that Berkshire announced in June to help the company expand its AI infrastructure.
How the stake was funded
Berkshire bought $23.5 billion and sold $3.7 billion of stocks during the second quarter, ending a 14-quarter stretch in which it had been a net seller of equities. The shift toward buying coincided with Chief Executive Greg Abel beginning to reduce the cash pile left by Warren Buffett, who stepped down as CEO at year-end and remains chairman. Berkshire's cash stake fell to $364.7 billion on June 30 from $380.2 billion on March 31, a decline that also reflected $4.5 billion of stock buybacks.
Other second-quarter moves
In the same regulatory filing, Berkshire said it eliminated its roughly year-and-a-half investment in Constellation Brands, the alcoholic beverages producer. It also added to investments in Delta Air Lines and Macy's that it had initiated in the first quarter. The disclosed U.S.-listed stock holdings represented most of Berkshire's $323.8 billion equity portfolio at the quarter's end.
Attribution of the move
Reporting indicates Buffett claimed credit for the decision to add to the Alphabet stake. Buffett told CNBC earlier in the week that he had spoken with Abel and other senior Berkshire managers about the Alphabet position and said he was the one who pushed for the additional investment. Abel has separately begun the broader task of deploying some of Berkshire's record cash reserves.
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