Berkshire Hathaway is increasing its investment in Alphabet, Google’s parent company, as well as in homebuilding firms. The conglomerate, based in Omaha, Nebraska, has released its recent investment portfolio update. This includes additions in the tech and homebuilding sectors while reducing its position in financial firms.
CEO Greg Abel, who succeeded Warren Buffett at the beginning of the year, committed to investing $10 billion in Alphabet in June. This move builds on the stake Berkshire began last fall. During the second quarter, the company acquired approximately 48.1 million shares in Alphabet. This brings its total to around 106 million shares, valued at $37.76 billion as of June 30. Previously, at the end of December, Berkshire owned just 17.8 million Alphabet shares worth $5.6 billion.
Alphabet plans to raise $80 billion to enhance the computing infrastructure essential for its AI services. Besides investing in tech, Berkshire strengthened its presence in the U.S. homebuilding market. Its Lennar stake rose nearly 30% in the second quarter. A small new position in D.R. Horton, valued at $580,504 by June’s end, was also established. In July, Berkshire finalized a $6.8 billion acquisition of Taylor Morrison, another homebuilder.
Berkshire significantly increased its stakes in Delta Air Lines and Macy’s during the second quarter. These holdings were valued at about $5.37 billion and $173 million, respectively, as of June 30. Additionally, Berkshire reduced its investment in several stocks from the first quarter. This included companies like Kroger, Nucor, and DaVita. The company completely exited its 632,890-share investment in Constellation Brands.
In the financial sector, Berkshire trimmed its stakes in Bank of America and Ally Financial by roughly 6% and 6.9%, respectively. Its holdings in Capital One Financial dropped by 58%. Many investors track Berkshire’s portfolio moves, often mirroring Buffett’s strategies. Despite this interest, Berkshire, which owns numerous businesses, including insurers like Geico and the BNSF railroad, doesn’t comment on its quarterly portfolio changes because it prefers to keep its investment activities private.