Berkshire Hathaway Elevates Alphabet to Top Three Holdings
For the first time since its founding, Berkshire Hathaway is led by a new CEO after Warren Buffett retired on December 31. Greg Abel has already begun reshaping the company's $359 billion investment portfolio, including trimming several holdings and reordering top positions. Alphabet (GOOGL/GOOG) now ranks as Berkshire’s third-largest holding following significant purchases totaling nearly $17 billion in Q2. Coca-Cola remains a key long-term stake for Berkshire due to its high yield on cost basis of 65%, despite dropping from the No. 3 position, while Bank of America has been gradually reduced over eight consecutive quarters as it no longer appears undervalued. Alphabet's rise is attributed in part to its dominant market positions—Google controls nearly all global search traffic and YouTube ranks second among social sites—and strong AI-driven growth in Google Cloud. Alphabet’s cloud sales surged 82% year-over-year, driven by generative AI integration, which seems to have captured the attention of Berkshire's new leadership. This shift signals a strategic pivot toward tech investments under Abel.
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Topics: Bank of America Berkshire Hathaway Coca-Cola Google/Alphabet stock portfolio shifts