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Berkshire Hathaway Boosts Alphabet Stake, Trims Bank Holdings in Q2 Filing
Summary
Warren Buffett's conglomerate significantly increased its investment in Google-parent Alphabet while reducing its exposure to major banks like Bank of America during the second quarter, according to a new regulatory filing.
Berkshire Hathaway substantially increased its holdings in Alphabet Inc. (GOOGL) while trimming its exposure to the financial sector during the second quarter, according to the company's latest 13F filing. The regulatory disclosure provides a snapshot of the Omaha-based conglomerate's investment strategy, revealing a calculated rotation into technology and consumer-focused equities.
A Shift from Finance to Tech
The most significant change in the portfolio was a major increase in Berkshire's stake in Google's parent company, Alphabet. The firm added tens of millions of shares across both of the tech giant's share classes.
- Class A (GOOGL) holdings grew to nearly 79 million shares.
- Class C (GOOG) holdings now exceed 27 million shares.
In a contrasting move, Berkshire systematically reduced its investments in the banking industry. The company sold more than 30 million shares of Bank of America (BAC), though it remains a massive position. The filing also showed meaningful reductions in its stakes in Capital One Financial (COF) and Ally Financial.
Bets on Housing and Consumer Spending
AdBerkshire demonstrated renewed confidence in the U.S. housing market and consumer. The firm expanded its investments in homebuilder Lennar Corporation (LEN) and initiated a new position in competitor D.R. Horton Inc. (DHI).
Further adjustments included bolstering its positions in consumer-facing companies. Berkshire added approximately 17.5 million shares of Delta Air Lines Inc. (DAL) and over 4 million shares of retailer Macy's Inc. (M). During the same period, the conglomerate completely exited its position in beverage maker Constellation Brands Inc. (STZ).
Core Holdings Remain Untouched
Despite these tactical shifts, the foundational pillars of Berkshire's equity portfolio remained unchanged. The firm maintained its massive positions in Apple Inc. (AAPL), American Express Company (AXP), and The Coca-Cola Co. (KO).
Major energy holdings in Occidental Petroleum Corporation (OXY) and Chevron Corp. (CVX) were also left untouched. The portfolio adjustments follow a strong second-quarter earnings report, where Berkshire reported operating profits of $12.98 billion, a 16% increase driven by its energy, manufacturing, and railroad divisions.
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