Why Google is making headlines in Berkshire's biggest quarter of stock-buying
In a remarkable shift, Berkshire Hathaway has expanded its investment in Alphabet, acquiring approximately 106 million shares, marking its most significant stock purchase quarter in years. Additionally, the conglomerate escalated its Delta Air Lines investment by 44 percent, with total stock spending exceeding $23 billion last quarter. This change ends a 14-quarter trend of being a net seller.
Berkshire Hathaway, under the leadership of CEO Greg Abel, made headlines this quarter with its record-breaking stock buying spree. The conglomerate's holdings in Alphabet surged by 83% to approximately 106 million shares, valued at $38 billion as of the end of June. Berkshire acquired $10 billion worth of Alphabet shares at a discount in a private placement last June and added further 19.6 million shares to its portfolio in the previous quarter.
This investment puts Alphabet as Berkshire's third-largest US holding, trailing behind Apple and American Express. Despite Warren Buffett's historical preference for traditional businesses over technology stocks, he reportedly personally agreed to invest in Alphabet last year. With Buffett still serving as chairman, it appears that decision-making now reflects a collaborative effort between him and Abel.
Alphabet's stock has seen a remarkable 170% increase over the past three years, and investors remain optimistic about the company's potential in the AI-driven market. Apart from Alphabet, Berkshire Hathaway also increased its stake in Delta Air Lines by 44%, acquired a new position in D.R. Horton, and expanded its holdings in Lennar and Macy's.
However, the firm also reduced its shares in Capital One, Nucor, and Bank of America, while exiting its smaller position in Constellation Brands. The second-quarter update revealed that Berkshire spent $23.5 billion on stocks while selling only $3.7 billion, marking 14 consecutive quarters as a net seller. Additionally, the firm executed $4.5 billion in buybacks, reducing its cash reserves from $380 billion to $365 billion.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
