Warren Buffett Berkshire Hathaway Adjusts Portfolio with Major Alphabet Investment

Warren Buffett Berkshire Hathaway Adjusts Portfolio with Major Alphabet Investment

Warren Buffett Berkshire Hathaway Adjusts Portfolio with Major Alphabet Investment

Warren Buffett’s Berkshire Hathaway has executed a significant reshuffling of its stock holdings, as revealed in a recent regulatory filing to the US Securities and Exchange Commission. 

This move, one of the most substantial portfolio adjustments in the lead-up to Buffett's planned departure as chief executive, indicates a strategic shift in the conglomerate’s equity exposure. 

The primary action involved a major new investment in Alphabet, the parent company of Google, during the third quarter.

The regulatory filing confirmed that Berkshire purchased 17.85 million shares of Alphabet, establishing a new stake valued at approximately $4.9 billion as of the market close on Friday. 

This fresh, multi-billion dollar investment underscores the conglomerate’s increasing interest in major technology firms that possess long-term resilience and maintain diversified revenue streams. 

The timing of this disclosure, weeks before the end of Buffett's 60-year tenure, adds considerable weight to the strategic decision.

In contrast to the major tech addition, Berkshire continued to pare down its long-held position in Apple Inc. 

The company reduced its holding from 280 million shares to 238.2 million shares during the third quarter. 

Despite this scaling back—which follows the sale of nearly three-quarters of the 900 million shares it once owned—Apple remains Berkshire’s largest equity investment, valued at $60.7 billion, and still accounts for almost a quarter of the firm's total stock portfolio.

Beyond Apple, Berkshire also decreased its exposure to the financial sector by selling 37.2 million shares of Bank of America Corp. 

Following this reduction, the conglomerate retains a 7.7% stake in the bank, which still holds its position as Berkshire’s third-largest holding. 

Additionally, in a decisive move, the company completely exited its position in the US homebuilder D.R. Horton, signaling a shift out of that sector entirely during the same quarter.

At 95 years old, Buffett is preparing to step down at the end of the year, and these moves show him actively deploying parts of Berkshire’s record $382 billion cash reserve into new opportunities. 

Beyond these public market adjustments, the firm has recently committed capital to major acquisitions, including the $9.7 billion deal for Occidental Petroleum’s petrochemical unit and securing a $1.6 billion stake in UnitedHealth Group, showcasing a sustained focus on deploying capital before the transition.