Berkshire Hathaway Boosts Alphabet, Homebuilder Stakes

Berkshire Hathaway significantly expanded its investment in Alphabet, Google's parent company, during the second quarter of the year, according to the conglomerate's latest regulatory filing. The Omaha, Nebraska-based company acquired approximately 48.1 million shares of Alphabet, bringing its total holdings to roughly 106 million shares. This substantial increase represents a dramatic growth from the 17.8 million Alphabet shares Berkshire held at the end of December, which were valued at $5.6 billion. By June 30, the expanded stake in Alphabet was valued at approximately $37.76 billion. This move aligns with Alphabet's stated plans to raise $80 billion for computing infrastructure to support its artificial intelligence initiatives. Berkshire Hathaway also continued to bolster its investments in the U.S. homebuilding sector. The company increased its stake in homebuilder Lennar by nearly 30% and established a new, albeit smaller, stake in D.R. Horton, valued at $580,504 as of June 30. Further demonstrating its commitment to the housing market, Berkshire completed a $6.8 billion acquisition of homebuilder Taylor Morrison in July. In addition to its tech and housing sector investments, Berkshire Hathaway also significantly increased its shares in Delta Air Lines and Macy's during the second quarter. The stakes in Delta Air Lines and Macy's were valued at approximately $5.37 billion and $173 million, respectively, by the end of June. The conglomerate also made notable reductions to its investment portfolio. Berkshire continued to pare its stake in financial companies and reduced holdings in several other stocks. Specifically, the company decreased its stake in supermarket operator Kroger, steel manufacturer Nucor, and dialysis giant DaVita. A significant divestment occurred with the complete sale of Berkshire's holdings in alcoholic beverage maker Constellation Brands, amounting to 632,890 shares. This strategic shift in portfolio allocation reflects a broader trend of reducing exposure to financial institutions and specific consumer goods companies while doubling down on technology and the resilient housing market. The filing provides a snapshot of Berkshire Hathaway's investment activities during the April-June period, overseen by CEO Greg Abel, who assumed leadership from Warren Buffett at the start of the year.