Alphabet becomes Berkshire Hathaway’s third-largest investment

Berkshire Hathaway announced on August 14, 2024, that its investment in Alphabet, the parent company of Google and YouTube, grew by 83% during the second quarter, elevating the tech giant to the third-largest holding in the company's portfolio. As of June 30, Berkshire owned approximately 106 million Alphabet shares, valued at around $37.8 billion, up from 57.8 million shares three months earlier.

The stake comprised a $10 billion investment disclosed in June, aimed at bolstering Alphabet's AI infrastructure capabilities. At the end of June, Apple remained Berkshire's largest stock investment, with a value of $66 billion, followed by American Express at $51.3 billion. Bank of America and Coca-Cola ranked fourth and fifth, respectively.

In a regulatory filing, Berkshire also disclosed the elimination of its $2.8 billion investment in Constellation Brands, as well as increased allocations to Delta Air Lines and Macy's, both initiated in the first quarter. The changes in Berkshire's U.S.-listed stock holdings, which formed the bulk of its $323.8 billion equity portfolio, were documented in the filing.

During the quarter, Berkshire bought $23.5 billion in stocks and sold $3.7 billion, marking a shift from a 14-quarter period where it had sold more stocks than it bought. Berkshire's cash reserves decreased to $364.7 billion on June 30 from $380.2 billion on March 31, reflecting a $4.5 billion stock buyback. Berkshire's Chairman, Warren Buffett, told CNBC last month that he and Berkshire's Chief Executive, Greg Abel, collaborate on capital allocation decisions.

The investments in Alphabet expanded by 44% in the second quarter to 57.3 million shares, valued at nearly $5.4 billion, while the stake in Macy's more than doubled to about 7.3 million shares, valued at $173 million. Berkshire also boosted its holdings in Lennar, adding more shares, and disclosed a small stake of $580,000 in D.R.

Horton. The portfolio saw reductions in holdings of Ally Financial, Bank of America, Capital One, DaVita, Kroger, and steelmaker Nucor. Berkshire's investment team, led by CEO Greg Abel and investment manager Ted Weschler, was responsible for managing the stock transactions. The filing did not specify which team bought or sold particular stocks.