Greg Abel took the helm of Berkshire Hathaway as Warren Buffett stepped down, and the new chief quickly reshaped the conglomerate’s investment mix.
CEO transition triggers swift portfolio overhaul
The company trimmed 16 holdings from its $359 billion portfolio, setting the stage for a major purchase of shares in the Google parent.
Alphabet climbs to Berkshire’s third‑largest holding
During the second quarter, the board approved a $17 billion investment in Alphabet Class A and Class C stock, including a $10 billion private placement. By late August, the stake had overtaken the long‑standing position in Coca‑Cola, moving the tech giant into the No. 3 slot.
Alphabet commands roughly 90 % of global search traffic, a dominance that has helped it expand into artificial‑intelligence services and cloud computing. Google Cloud reported an 82 % revenue jump last quarter, showing the company’s growing role in the worldwide infrastructure market.
While the shift toward the digital sector is evident, the move also reflects a broader trend of value‑oriented investors seeking growth‑driven assets.
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The decision to increase exposure to the search‑engine leader may appear bold, yet it aligns with the firm’s historical emphasis on durable competitive advantages. By betting on a company that powers the internet’s backbone, Berkshire positions itself alongside the engines of the modern economy.
Coca‑Cola remains a fixture in the portfolio, despite losing its podium spot. The beverage maker still yields a $2.12 annual dividend, and the original 1988 purchase price of $3.25 per share translates to a 65 % return on cost.
In contrast, the stake in Bank of America has been trimmed for eight consecutive quarters. Buffett originally bought the bank in 2011 at a deep discount, but the stock now trades at a premium that falls outside the firm’s preferred value metrics.
The rebalancing hints at a subtle shift from the “old‑economy” focus that defined much of the previous decade. Apple once anchored the tech portion of the holdings, but the new emphasis on AI and cloud infrastructure suggests a different strategic horizon.
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