Berkshire Hathaway Boosts Stake in Alphabet and Homebuilders

Berkshire Hathaway is expanding its investment in Alphabet, the parent company of Google, along with bolstering its assets in the homebuilding sector. The Omaha-based company revealed these changes in its latest investment portfolio summary.

CEO Greg Abel, who assumed leadership from Warren Buffett earlier this year, made a significant move in June with a $10 billion stock investment in Alphabet. This step builds on the investment Berkshire initiated last fall. During the second quarter, the company acquired approximately 48.1 million shares in Alphabet, increasing its total holdings to about 106 million shares. As of June 30, this stake was valued at around $37.76 billion. In contrast, at the end of December, Berkshire had only 17.8 million Alphabet shares worth $5.6 billion. Alphabet intends to raise $80 billion for expanding its computing infrastructure to enhance its AI offerings.

Beyond technology, Berkshire is increasing its presence in the U.S. homebuilding sector. Its investment in Lennar, a homebuilder, grew nearly 30% in the second quarter. Additionally, Berkshire established a new position in D.R. Horton, valued at $580,504 by the end of June. July saw the completion of Berkshire’s $6.8 billion acquisition of Taylor Morrison, another homebuilder.

Berkshire broadened its portfolio by significantly increasing its shares in Delta Air Lines and Macy’s during the second quarter, with stakes valued at approximately $5.37 billion and $173 million, respectively, by June 30.

Conversely, the company trimmed its investment portfolio, reducing its stake in several firms. Some affected companies included Kroger, Nucor, and DaVita. Moreover, Berkshire completely sold its 632,890 shares in Constellation Brands and decreased its holdings in various financial institutions. Its stakes in Bank of America and Ally Financial fell by about 6% and 6.9%, respectively, while its shares in Capital One Financial were reduced by 58%.

Investors often scrutinize Berkshire’s portfolio shifts, seeking to emulate Buffett’s strategies. Warren Buffett remains the chairman and largest shareholder, even as Berkshire owns multiple businesses like Geico and BNSF railroad. Berkshire refrains from commenting on its quarterly stock transactions to maintain confidentiality regarding its buying and selling decisions.