Greg Abel Reduces Bank of America Stake While Boosting Alphabet Position in Berkshire Hathaway Portfolio
In the second quarter, Berkshire Hathaway under Greg Abel sold more than half of its Bank of America holdings and added roughly $36.6 billion of Alphabet shares, making the tech company its third-largest investment.
Berkshire Hathaway's latest 13F filing shows that Greg Abel, who took over Warren Buffett's $358 billion investment portfolio after Buffett stepped down as CEO, continued to trim the conglomerate's position in Bank of America while significantly increasing its stake in Alphabet. The firm sold about 30.2 million Bank of America shares in the quarter, reducing the total holding by roughly 53% to around 549.5 million shares, marking the eighth consecutive quarter of sales.
"When we first invested in Bank of America in 2011, the stock was trading at a substantial discount to book value; today it commands a premium," the filing notes.
The reductions are attributed to profit-taking and a shift in valuation, as the bank's price-to-book ratio has moved from a 62% discount to a 64% premium. Analysts also point to the bank's sensitivity to interest-rate changes, which have affected net interest income amid recent Federal Reserve rate cuts.
Conversely, Berkshire added 24.5 million Class A and 23.6 million Class C shares of Alphabet, valued at about $36.6 billion combined. This purchase, which includes a $10 billion private placement announced on June 1, elevated Alphabet to Berkshire's third-largest holding, surpassing both Bank of America and Coca-Cola. The filing highlights Alphabet's dominant position in internet search, its ownership of YouTube, and rapid growth in AI-driven cloud services, which saw an 82% increase in high-margin sales in the June-ended quarter.