Buffett's Berkshire Hathaway buys $4B Alphabet stake, trims Apple holdings
What's the story
Warren Buffett's Berkshire Hathaway has made a major investment in Alphabet, Google's parent company. The conglomerate has bought a $4.3 billion stake in the tech giant, making it its 10th-largest equity position. This strategic move marks a departure from Buffett's traditional aversion to high-growth tech stocks and comes as Alphabet's shares continue to rise amid strong demand for AI and cloud services.
Investment strategy
Berkshire Hathaway's tech investment managers behind Alphabet purchase
The decision to invest in Alphabet was likely made by Berkshire Hathaway's investment managers Todd Combs or Ted Weschler. Both have shown a willingness to explore technology investments, with one of them having initiated the company's Amazon investment back in 2019. Despite owning Apple for years, Buffett has always viewed it more as a consumer products company than a tech stock.
Market insights
Buffett's past regrets and current investment decisions
Buffett has previously admitted to missing the chance to invest in Google, despite seeing its advertising potential through Geico. "I had seen the product work, and I knew the kind of margins [they had]," he said in 2018. "I didn't know enough about technology to know whether this really was the one that would stop the competitive race."
Portfolio adjustments
Berkshire Hathaway continues to trim Apple stake
Along with the Alphabet investment, Berkshire Hathaway also reduced its stake in Apple by another 15% to $60.7 billion at the end of the quarter. The move comes after Buffett spent most of 2024 continuing to trim Berkshire's Apple holdings, a decision that surprised many long-time followers. Over time, nearly three-quarters of the original 905 million shares have been sold. Despite these changes, Apple still remains Berkshire's largest single equity position.
Market trends
Berkshire Hathaway's continued stock sales and future leadership
Berkshire Hathaway also reduced its stakes in Bank of America, Verisign, and DaVita. The company has been a net seller of stocks for 13 consecutive quarters as valuations rose in a tech-driven market. These changes come as Buffett, now 95, prepares to step down as CEO at the end of this year. Greg Abel is set to take over with investors closely watching how Berkshire's investing style may change in the post-Buffett era.