Berkshire Hathaway Boosts Alphabet Stake by 83%, Becoming Third-Largest Investment

Berkshire Hathaway has made a substantial bet on Google's parent company, Alphabet, significantly boosting its holdings in the tech giant. Regulatory filings reveal that Berkshire's stake in Alphabet surged by 83% in the second quarter, elevating it to become the company's third-largest stock investment.

As of June 30, Berkshire held nearly 106 million shares of Alphabet, a considerable increase from the 57.8 million shares held at the end of March. This new valuation places the investment at approximately $37.8 billion, trailing only Berkshire's stakes in Apple and American Express. The increased investment includes a $10 billion commitment announced in June to support Alphabet's expansion of its artificial intelligence infrastructure.

This strategic move signals a notable shift in Berkshire Hathaway's investment approach. For the first time in 14 quarters, the company's stock purchases exceeded its sales, with approximately $23.5 billion invested and $3.7 billion divested in the second quarter. This change comes as new CEO Greg Abel gradually takes over capital allocation responsibilities from Warren Buffett, utilizing the company's substantial cash reserves.

Berkshire's cash and cash equivalents decreased to $364.7 billion at the end of June, down from $380.2 billion in the previous quarter. This reduction in cash suggests a more active deployment of funds into strategic investments, with Alphabet now a prominent feature of its portfolio.