Berkshire Hathaway Makes Alphabet Its Third-Largest Investment
Synopsis
Berkshire Hathaway boosted its Alphabet investment by 83% in the second quarter, ending June with nearly 106 million shares worth $37.8 billion.
Key Highlights
- Berkshire Hathaway boosted its stake in Alphabet by 83% in the second quarter.
- At the end of June, Berkshire had possessed close to 106 million Alphabet shares, which cost $37.8 billion.
- Alphabet is now Berkshire’s third health stock position.
- Berkshire purchased $23.5 billion worth of stocks and sold $3.7 billion in the quarter.
By the second quarter, Berkshire raised its stake in Alphabet, Google’s and YouTube’s parent company to $26 billion, up 83%, making it the conglomerate’s third-largest stock position.
As of June 30, Berkshire owned nearly 106 million Alphabet shares worth about $37.8 billion, up from its holding of 57.8 million shares three months earlier. That stake includes a $10 billion investment announced in June to support Alphabet’s AI infrastructure expansion.
Berkshire’s Top Investments
The biggest equity investment of Berkshire is Apple with a $66 billion position and American Express was next at $51.3 billion. Coca-Cola comes fourth and Bank of America fifth.
Berkshire also sold the last of its year-and-a-half stake in Constellation Brands and boosted positions in Delta Air Lines and Macy’s. The moves were revealed in a filing detailing Berkshire’s US-listed stock holdings as of June 30, which accounts for the majority of its $323.8 billion equity portfolio.
Berkshire Reduces Cash Holdings
During the second quarter, Berkshire purchased $23.5 billion worth of stocks and erased $3.7 billion more in sales, the first time since early 2016 that the company bought more equities than it sold in any three-month period.
The amount of cash held by Berkshire dropped to $364.7 billion on June 30 from $380.2 billion on March 31. The fall also included $4.5 billion in stock buybacks. Warren Buffett, who remains Berkshire’s chairman, said last month that purchasing Alphabet was his idea. The stake was started by Berkshire in the third quarter of last year.
Other Portfolio Changes
Berkshire’s Delta Air Lines holdings were increased by 44% to 57.3 million shares worth almost $5.4 billion. Its Macy’s stake more than doubled to roughly 7.3 million shares valued at $173 million.
Berkshire also added to its holdings in homebuilder Lennar and revealed a $580,000 position in D.R. Horton. The firm trimmed its stakes in Ally Financial, Bank of America, Capital One, DaVita, Kroger and Nucor.
In February, Greg Abel said he oversaw 94% of Berkshire’s stock holdings as investment manager Ted Weschler managed the remaining 6%. The most recent filing did not identify individual purchases or sales of stock, just the totals.
Berkshire also has stakes in companies like BNSF railroad, Geico, energy and manufacturing firms and retail brands such as Brooks, Dairy Queen, Fruit of the Loom and See’s.
Source: Reuters
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