Full Breakdown
Berkshire Hathaway Elevates Alphabet to Third-Largest Holding
8/15/2026, 3:22:24 AM
Core Investment Shift
Berkshire Hathaway increased its stake in Alphabet by 83 % in the second quarter, raising its ownership to roughly 106 million shares valued at about $37.8 billion as of June 30. The surge moved Alphabet to the third-largest position in Berkshire’s U.S.–listed equity portfolio, behind Apple and American Express. The expansion reflects a $10 billion private-placement purchase announced in early June and an additional 19.6 million shares acquired on the open market later in the quarter.
Portfolio Context
- Largest holdings: Apple remained the top position at $66 billion, and American Express followed at $51.3 billion.
- Other adjustments: Berkshire added to its stakes in Delta Air Lines (a 44 % increase to a $5.4 billion holding) and homebuilders Lennar and D.R. Horton (the latter a $580,000 position). The firm more than doubled its Macy’s investment to roughly 7.3 million shares worth $173 million.
- Divestitures: The conglomerate eliminated a year-and-a-half investment in Constellation Brands and reduced holdings in Ally Financial, Bank of America, Capital One, DaVita, Kroger, and Nucor.
Financial Impact
Berkshire’s cash balance fell to $364.7 billion on June 30, down from $380.2 billion on March 31, a decline that includes $4.5 billion of stock buybacks. In the quarter, the company purchased $23.5 billion of stocks and sold $3.7 billion, marking its first net-buy quarter in 14 quarters and representing the largest quarterly outlay since 2022.
Executive Perspectives
- Warren Buffett: The Berkshire chairman told CNBC that the decision to invest in Alphabet originated with him, noting that the stake began forming in the third quarter of the prior year.
- Greg Abel: The chief executive, who assumed the role at the start of 2026, said he oversees 94 % of Berkshire’s stock holdings, with investment manager Ted Weschler handling the remaining 6 %.
Data Summary
- Alphabet shares: ~106 million (up from 57.8 million three months earlier) – Berkshire filing.
- Alphabet value: $37.8 billion (cnbc reports $37.9 billion) – Berkshire filing / cnbc.
- Apple value: $66 billion – Berkshire filing.
- American Express value: $51.3 billion – Berkshire filing.
- Delta Air Lines stake: $5.4 billion – Berkshire filing.
- Cash balance change: $380.2 billion -> $364.7 billion – Berkshire filing.
Conflicting Reports & Gaps
- Alphabet valuation: Reuters and Business Insider cite $37.8 billion, while CNBC lists $37.9 billion for the same June 30 holding. The source of the $0.1 billion difference is not explained.
- Exact composition of the $10 billion private placement: Sources confirm the amount but do not disclose pricing terms or the proportion allocated to the open-market purchase.
Timeline
- June 25, 2026: Berkshire CEO Greg Abel holds a U.S. flag at a naturalization ceremony in Des Moines (contextual event).
- June 30, 2026: Regulatory filing discloses the expanded Alphabet stake and related portfolio changes.
- August 14, 2026: Reuters publishes the news of the Alphabet investment increase.
The quarter’s activity signals a strategic shift toward technology assets under the joint guidance of Buffett and Abel, while also reflecting a broader rebalancing of Berkshire’s cash-intensive portfolio.
