Berkshire's Q2 Filing: Alphabet Rises to No. 3, Net Buying Resumes

Berkshire Hathaway increased its Alphabet stake by 83% in the second quarter, lifting the holding to roughly 106 million shares worth about $37.8 billion at the end of June, according to the company's quarterly 13F filing. That made Alphabet the third-largest listed stock in Berkshire's portfolio, behind Apple at $66 billion and American Express at $51.3 billion, and ahead of Coca-Cola and Bank of America.

The enlarged position includes a $10 billion investment announced in June that is earmarked to help Alphabet finance the expansion of its AI infrastructure. The build-up did not come from a small base: three months earlier Berkshire held 57.8 million Alphabet shares, and the company had already opened the position in the third quarter of 2024.

Across the portfolio, Berkshire bought $23.5 billion of equities and sold $3.7 billion during the quarter. That made it a net buyer for the first time in 14 quarters and helped reduce the cash pile from $380.2 billion at the end of March to $364.7 billion at the end of June. The filing also shows $4.5 billion in share buybacks. The shift comes as new CEO Greg Abel begins deploying part of the cash left by Warren Buffett, who remains chairman and told CNBC last month that the Alphabet stake was his idea.

Among other moves, Berkshire raised its Delta Air Lines stake by 44% to 57.3 million shares worth close to $5.4 billion, doubled its Macy's position to about 7.3 million shares, added to Lennar and disclosed a small $580,000 stake in D.R. Horton. It reduced holdings in Ally Financial, Bank of America, Capital One, DaVita, Kroger and Nucor.

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Why the Alphabet and Airline Bets Matter for Berkshire Under Greg Abel

Alphabet to No. 3: A $10 Billion AI Commitment Sits Inside the Increase

Berkshire's disclosed 83% increase is not purely an open-market trade. The filing makes clear that the enlarged position includes a $10 billion investment announced in June, tied to Alphabet's AI infrastructure build-out. That matters because it frames Berkshire's move as patient capital for a specific corporate spending program, rather than only a tactical bet on Google's near-term advertising results. Still, the fact that Berkshire first built an Alphabet stake in the third quarter of 2024 and then expanded it substantially puts a second mega-cap technology franchise alongside Apple in a portfolio that Buffett historically approached with skepticism toward tech.

Abel's First Big Allocation Shift Ends the Net-Selling Streak

The Q2 filing shows $23.5 billion in purchases against only $3.7 billion in sales, interrupting 14 consecutive quarters of net selling. The direction is significant: under Greg Abel, Berkshire is at least partly redirecting capital from a $380 billion cash position back into equities and buybacks. But the scale still leaves $364.7 billion in cash. The sequential cash decline of roughly $15.5 billion is smaller than the net equity purchases, so the filing does not by itself show exactly how every dollar was funded. It also does not disclose what Abel and investment manager Ted Weschler each bought or sold, even though Abel has said he is responsible for 94% of equity investments.

Smaller Bets on Travel, Retail and Housing Mirror a Consumer-Selective Tilt

Berkshire's other disclosed changes are less concentrated but reveal a pattern: an enlarged airline position in Delta, a doubled Macy's stake, additional homebuilder exposure through Lennar and a small D.R. Horton position. At the same time, Berkshire trimmed several financial and consumer-facing names, including Bank of America, Capital One, Ally Financial and Kroger. Because the filing does not attribute individual transactions, readers should be cautious about linking every move to a single strategy. But the combination points to selective deployment into travel, housing and select retail rather than a broad market call.

What Berkshire's Portfolio Shift Signals for Investors and Counterparties

  • Separate the AI commitment from the trading signal. The enlarged Alphabet position includes the $10 billion AI-infrastructure investment announced in June; the next 13F will show whether Berkshire added more Alphabet stock beyond that commitment.
  • Measure deployment against the remaining cash pile. Berkshire bought $23.5 billion of stock and bought back $4.5 billion, but still held $364.7 billion in cash on June 30. For Berkshire shareholders, the shift is directionally important but still modest relative to total liquidity.
  • Watch the financials Berkshire trimmed. Bank of America, Capital One and Ally Financial all saw reduced positions, yet the filing does not identify whether Greg Abel or Ted Weschler was responsible. Investors in those names should avoid treating the cuts as an automatic negative signal about the underlying companies.
  • For travel, retail and housing names, look for follow-through. Delta Air Lines was increased 44%, Macy's was doubled, and Lennar plus a small D.R. Horton stake were added. The next quarterly filing will show whether these remain core positions or one-time adjustments.

Risk & Opportunity Assessment

Commercial RiskMediumBerkshire's top stock positions are becoming more concentrated in large technology and financial names; adding a $37.8 billion Alphabet position increases exposure to technology valuations while cash remains large but is being reduced.
Competitive RiskLowThe filing involves minority stakes and does not change the competitive position of Berkshire's operating businesses or the companies in the portfolio.
Regulatory RiskLowThe 13F disclosure is routine and contains no new regulatory action or policy change.
Reputation RiskMediumWarren Buffett has publicly said the Alphabet stake was his idea, and the resumption of net buying under Greg Abel will be closely judged against Berkshire's long-term record.
Technology DisruptionMediumBerkshire's $10 billion commitment to Alphabet's AI infrastructure ties part of the position to the pace and profitability of AI capital spending, which remains uncertain.
Commercial OpportunityHighThe Alphabet build-out gives Berkshire exposure to AI and digital advertising, while increases in Delta, Macy's, Lennar and D.R. Horton add travel, retail and housing exposure if consumer demand holds.