Berkshire Hathaway's Alphabet stake rose 83% in the second quarter, lifting the position to about 106 million shares worth roughly $37.8 billion and making it Berkshire's third-largest equity holding. The conglomerate also bought $23.5 billion in stock while selling $3.7 billion, ending 14 straight quarters of net selling.
How Much Did Berkshire's Alphabet Stake Increase?
Berkshire's Alphabet stake grew 83% in share count during the second quarterCITE:E1CITE:E9. As of June 30, Berkshire held roughly 106 million Alphabet shares valued at about $37.8 billion, up from 57.8 million shares at the end of MarchCITE:E2CITE:E10.
How Did Alphabet Become Berkshire's Third-Largest Holding?
Alphabet passed Coca-Cola and Bank of America to rank third among Berkshire's holdingsCITE:E9. Apple remained Berkshire's largest stock position, valued at about $66 billion as of June 30, followed by American Express at roughly $51.3 billionCITE:E4CITE:E11. Alphabet ranked third at about $37.8 billion, with Coca-Cola fourth and Bank of America fifthCITE:E5CITE:E12.
| Rank | Holding | Value (as of June 30) |
|---|
| 1 | Apple | ~$66 billion |
| 2 | American Express | ~$51.3 billion |
| 3 | Alphabet | ~$37.8 billion |
| 4 | Coca-Cola | not disclosed |
| 5 | Bank of America | not disclosed |
What Marks the Shift in Berkshire's Capital Allocation?
Berkshire bought more stock than it sold for the first time in 14 quartersCITE:E6. The company purchased about $23.5 billion in equities during the second quarter while selling $3.7 billion, ending a run of 14 consecutive quarters in which it sold more stock than it boughtCITE:E6CITE:E13.
How Are Falling Cash Reserves Tied to the New CEO's Moves?
Berkshire's cash pile fell to $364.7 billion as Greg Abel took over capital allocationCITE:E7. Cash and equivalents dropped to $364.7 billion as of June 30, down from $380.2 billion at the end of MarchCITE:E7CITE:E14. Berkshire attributed the move to incoming CEO Greg Abel gradually assuming capital-allocation responsibilities and beginning to deploy the cash reserve left by former CEO Warren BuffettCITE:E8.
Why Did Berkshire Increase Its Alphabet Position?
The stake increase includes $10 billion Berkshire pledged to Alphabet's AI infrastructure buildoutCITE:E3. Berkshire disclosed that the Alphabet position includes a $10 billion commitment announced in June to help Alphabet expand its artificial intelligence (AI) infrastructureCITE:E3. Buffett, who stepped down as CEO at the end of last year but remains chairman, told CNBC last month that the Alphabet investment was his own ideaCITE:E15.
What This Means
The numbers line up into a single shift: a firm that sold more stock than it bought for 14 straight quarters, and still held $364.7 billion in cash as of June 30, spent the second quarter putting $23.5 billion into equities — including an 83% larger Alphabet position built partly around a $10 billion AI-infrastructure commitment that Buffett says was his own callCITE:E6CITE:E7CITE:E1CITE:E3CITE:E15. That reallocation is unfolding as Greg Abel formally takes over capital-allocation duties from BuffettCITE:E8.