Berkshire Hathaway has adjusted its portfolio strategy significantly during the second quarter. The conglomerate, now under the leadership of CEO Greg Abel, increased its position in Alphabet by 83 percent. This move elevates the Google parent company to Berkshire’s third-largest U.S.-listed equity holding, trailing only Apple and American Express. The stake is valued at approximately $37.9 billion as of the end of June.
The investment in Alphabet aligns with a $10 billion private stock purchase made in early June to support the company’s infrastructure development for artificial intelligence. Warren Buffett reportedly supported this shift in direction during the recent quarter.
Beyond big tech, Berkshire expanded its presence in other sectors. The firm increased its holding in Delta Air Lines by 44 percent, representing a $5.4 billion position. This marks a notable return to the airline industry for the company.
Housing and construction also drew new capital. Berkshire increased its stake in Lennar by nearly 30 percent and disclosed a new position in D.R. Horton. These moves coincide with the completion of the acquisition of homebuilder Taylor Morrison.
After 14 consecutive quarters as a net seller of stocks, Berkshire Hathaway became a net buyer in the second quarter. The company executed nearly $20 billion in net purchases, contributing to a reduction in its cash reserves, which fell from $397.4 billion to $365.5 billion.