Berkshire Hathaway Adds Alphabet to Its Top Holdings
Berkshire Hathaway has added Alphabet as its fourth-largest holding, displacing Chevron from the top five. The investment firm significantly increased its stake in Alphabet by acquiring an additional 24.5 million shares during Q2 of this year, bringing total holdings to around 79 million shares valued at approximately $28.2 billion. Alphabet has been a focus for Berkshire Hathaway since Warren Buffett first invested nearly 18 million shares last year. The company's recent performance shows strong second-quarter results with revenue up 24% and operating income rising by 30%. However, Alphabet is investing heavily in AI infrastructure, which led to an increase in capital expenditures and a reported cash outflow of $5.8 billion for the quarter. The market has reacted cautiously due to concerns over free cash flow depletion from these investments. Despite this, Alphabet's current valuation at 16 times earnings aligns with Berkshire Hathaway’s investment strategy of acquiring strong companies at reasonable prices.
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Topics: 13F Filing Alphabet (GOOG) Berkshire Hathaway Stock Portfolio