Berkshire Hathaway Expands Investments in Alphabet and Homebuilders

Berkshire Hathaway is ramping up its investment in Alphabet, the parent company of Google, and increasing its stakes in homebuilders, as shown in the latest investment portfolio snapshot from the conglomerate. Based in Omaha, Nebraska, the company also reduced its positions in financial firms and various other stocks during the April-June quarter, according to a regulatory filing submitted on Friday.

Greg Abel, who became CEO at the beginning of the year, orchestrated a $10 billion stock investment in Alphabet in June, building upon the initial stake that Berkshire began acquiring last fall. During the second quarter, Berkshire obtained approximately 48.1 million shares in Alphabet, raising its total ownership in the tech company to about 106 million shares. As of June 30, this stake was valued at roughly $37.76 billion. By comparison, at the end of December, Berkshire possessed only 17.8 million Alphabet shares worth $5.6 billion. Alphabet has announced plans to collect $80 billion to fund the necessary computing infrastructure for its AI services.

Beyond the tech sector, Berkshire significantly increased its investments in the U.S. homebuilding industry. It expanded its stake in Lennar by nearly 30% in the second quarter and initiated a small new investment in D.R. Horton, valued at $580,504 at the end of June. In July, Berkshire finalized a $6.8 billion acquisition of homebuilder Taylor Morrison.

Berkshire also augmented its holdings in Delta Air Lines and Macy’s during the second quarter, with stakes valued at about $5.37 billion and $173 million, respectively, as of June 30. The company reduced its investment portfolio by trimming its stakes in several firms compared to the first quarter, such as supermarket operator Kroger, steel manufacturer Nucor, and dialysis provider DaVita. It fully divested from beverage company Constellation Brands, selling all its 632,890 shares.

Additionally, Berkshire decreased its shares in various financial entities. Holdings in Bank of America and Ally Financial shrunk by around 6% and 6.9%, respectively, and its stake in Capital One Financial was reduced by 58%. Investors have often mirrored Berkshire’s portfolio moves, taking cues from the strategies of Warren Buffett, who remains the chairman and largest shareholder. While the company owns numerous businesses, including major insurers like Geico and BNSF railroad, it traditionally refrains from discussing its quarterly stock portfolio adjustments to avoid revealing its buying and selling strategies.