Berkshire Hathaway makes Alphabet a top-three U.S. stock holding
Cue Writer
Berkshire Hathaway sharply increased its Alphabet stake in the second quarter, moving the Google parent into one of the conglomerate’s three largest U.S.-listed stock holdings by market value, according to CNBC.
A regulatory filing showed Berkshire owned about 106 million Alphabet shares valued at $37.9 billion at the end of June. The position rose 83% during the quarter, leaving it behind only Apple and American Express among Berkshire’s U.S.-listed equity holdings.
CNBC reported that the increase largely reflected a previously announced $10 billion private stock purchase as Alphabet sought capital for its artificial-intelligence infrastructure buildout. Warren Buffett, Berkshire’s chairman, told CNBC he supported the view on Alphabet along with Chief Executive Greg Abel.
The filing also showed Berkshire adding to its Delta Air Lines investment and increasing its exposure to homebuilders Lennar and D.R. Horton. Berkshire was a net buyer of equities in the quarter after a long run of net sales, while its cash balance declined from the prior quarter.
The moves will be watched as a signal of where one of Wall Street’s most closely followed investors sees value: large technology companies financing AI expansion, as well as cyclical areas tied to travel and housing. They do not, however, amount to a forecast for those industries or the broader market.
Source: CNBC