Google parent is now Berkshire Hathaway's 3rd largest investment
What's the story
Warren Buffett's Berkshire Hathaway has increased its stake in Alphabet, the parent company of Google, by a staggering 83% in the second quarter. This move has now made Alphabet Berkshire's third-largest stock holding. According to a recent regulatory filing, Berkshire now owns nearly 106 million shares of Alphabet, valued at around $37.8 billion as of June 30.
Investment shifts
Apple remains Berkshire's largest stock investment
The Alphabet investment includes a $10 billion stake announced in June to support Alphabet's AI infrastructure expansion.
Apple continues to be Berkshire's largest stock investment at $66 billion, followed by American Express at $51.3 billion.
Coca-Cola and Bank of America are ranked fourth and fifth respectively.
The filing also revealed that Berkshire has reduced its cash reserves from $380.2 billion on March 31 to $364.7 billion on June 30, partly due to stock buybacks worth $4.5 billion during this period.
Portfolio expansion
1st net stock purchase in over 3 years
In the second quarter, Berkshire bought $23.5 billion worth of stocks and sold $3.7 billion, ending a 14-quarter trend of selling more stocks than it bought.
The Delta investment grew by 44% in the second quarter to nearly $5.4 billion, while Macy's investment more than doubled to about $173 million, with around 7.3 million shares owned by Berkshire.
Changes
Berkshire trims stakes in other companies
Berkshire has also reduced its stakes in several companies including Ally Financial, Bank of America, Capital One, DaVita, Kroger, and Nucor.
The company has added to its investments in Delta Air Lines and Macy's which it started investing in during the first quarter.
Berkshire also bought more shares of home builder Lennar and disclosed a small stake worth $580,000 in D.R. Horton.