Berkshire Hathaway Discloses $4.3 Billion Stake in Alphabet Amid Portfolio Adjustments

Berkshire Hathaway has disclosed a $4.3 billion stake in Alphabet, the parent company of Google, as of the end of September, according to a recent regulatory filing. This investment positions Alphabet as the conglomerate's tenth-largest equity holding. The move is notable given Berkshire's traditional focus on value investing and its historical caution towards high-growth technology companies. While Berkshire has maintained a substantial investment in Apple, Warren Buffett has previously characterized Apple more as a consumer products company than a pure technology firm.

The Alphabet investment was likely initiated by Berkshire's investment managers Todd Combs or Ted Weschler, who have been more active in the technology sector. In 2019, one of them spearheaded an investment in Amazon, and Berkshire continues to hold approximately $2.2 billion in Amazon shares.

Alphabet's stock has experienced a 46% increase this year, driven by strong demand for artificial intelligence, which has bolstered its cloud business.

In contrast, Berkshire has continued to reduce its massive stake in Apple, trimming the position by another 15% during the quarter to $60.7 billion. This follows a significant reduction in 2024, where two-thirds of the Apple shares were sold, and further cuts in the second quarter of this year. Despite these sales, Apple remains Berkshire's largest equity holding.

Additionally, Berkshire decreased its holdings in Bank of America by 6%, bringing the investment to just under $30 billion. The company also reduced its positions in Verisign and DaVita during the third quarter.

Berkshire has been a net seller of stocks for 12 consecutive quarters, reflecting a cautious approach amid rising valuations in the tech-driven bull market.

The 95-year-old Warren Buffett is set to step down as CEO at the end of the year, with Vice Chairman Greg Abel slated to assume the role. Investors are closely monitoring Berkshire's investment decisions for insights into the company's future direction under new leadership.