According to The Financial Express, Berkshire Hathaway significantly expanded its investment in Alphabet during the second quarter, raising its stake by 83% to position the parent company of Google and YouTube as its third-largest holding. The investment giant now owns nearly 106 million Alphabet shares worth about $36.6 billion as of June 30, up from 57.8 million shares three months earlier. This expansion includes the $10 billion investment announced in June to help Alphabet expand its AI infrastructure, as reported by CNBC TV18. The stake now ranks behind only Apple ($69.7 billion) and American Express ($51.9 billion) in Berkshire's portfolio, with Coca-Cola ranking fourth and Bank of America fifth. As reported by The Financial Express, Warren Buffett himself confirmed he was behind the Alphabet purchase, telling CNBC on July 15, "I initiated it." This represents a dramatic increase from the $26 billion total Alphabet exposure that Berkshire held following its initial Q3 2025 position. As reported by CNBC TV18, Berkshire picked up roughly 48.1 million shares in Alphabet during the second quarter, bringing its total holdings to approximately 106 million shares valued at about $36.6 billion as of June 30. This compares to only 17.8 million Alphabet shares worth $5.6 billion as recently as the end of December.
As reported by The Financial Express, Berkshire Hathaway made several significant portfolio changes beyond its Alphabet expansion, with the company buying nearly $19.8 billion worth of publicly traded stocks in the second quarter according to its latest 13F filing submitted after market close on August 14. The company bought $23.5 billion in stocks and sold about $3.7 billion, marking a return to stock buying after 14 straight quarters of selling. The filing also showed that Berkshire's $5.4 billion investment in Delta Air Lines makes it the airline's second-largest shareholder with an 8.7% stake, built during the first half of 2026. Additionally, Berkshire sharply increased its shares in Macy's in the second quarter, with the stakes now worth about $173 million, as reported by CNBC TV18. The company also spent around $4.5 billion to buy back its own shares during the April-June quarter, according to The Economic Times. These changes were disclosed in a regulatory filing filed late Friday describing Berkshire's U.S.-listed stock holdings as of June 30, which comprised most of its $299.3 billion equity portfolio containing 29 companies. The restructuring comes as the investment giant deployed its record cash reserves under new CEO Greg Abel's leadership, marking a significant shift from its previous stock sales strategy.
According to The Financial Express, Berkshire Hathaway continued to boost its investments in the U.S. homebuilding sector during the second quarter. The company's stake in homebuilder Lennar increased nearly 30% in the quarter, while Berkshire also established a small new stake in D.R. Horton that was worth less than $600,000 at the end of June. In July, Berkshire completed a $6.8 billion acquisition of homebuilder Taylor Morrison, further expanding its presence in the residential construction sector. This homebuilding focus aligns with the broader real estate investment strategy that CEO Greg Abel has been implementing since taking over from Warren Buffett at the start of the year. The company also bought a new, though very small, position in homebuilder DR Horton, with the stake worth less than $600,000 at the end of the quarter. As reported by The Financial Times, Berkshire now holds four housing stocks with Lennar being the biggest at $1.2 billion, Louisiana-Pacific at $446 million, NVR at $75.7 million, and the new D.R. Horton stake at $580,504.
According to The Financial Express, Berkshire Hathaway also pared its shares in several financial companies during the second quarter. The company's stakes in Bank of America and Ally Financial declined by around 6% and 6.9%, respectively, while it slashed its shares in Capital One Financial by 58%. Additionally, Berkshire reduced its stake in several other companies relative to where they stood in the first quarter, including supermarket operator Kroger, steel manufacturer Nucor and dialysis giant DaVita. As reported by The Financial Times, Berkshire cut its Bank of America stake by 53% from its peak with Abel selling 30.23 million shares, marking the eighth straight quarter of trimming. The bank remains one of Berkshire's five biggest holdings, making up about 9.2% of the portfolio. These financial sector reductions reflect a broader portfolio rebalancing strategy under CEO Greg Abel's leadership, as the company continues to focus on sectors with stronger growth prospects while maintaining its diversified investment approach across multiple industries.
According to The Economic Times, Berkshire Hathaway reported strong quarterly operating profit and net income increases during the second quarter. The company's quarterly operating profit increased 16% to $12.98 billion, from $11.16 billion a year earlier, exceeding analysts' expectations. Net income more than doubled to $25.67 billion, from $12.37 billion a year earlier, with the figure including unrealized gains and losses on Berkshire's stock portfolio. Revenue rose 10% to $101.81 billion after remaining largely stagnant in previous quarters. The company's cash pile decreased to $360 billion in the second quarter from a record $397 billion in the first quarter, as reported by The Economic Times. This strategic deployment of cash reserves demonstrates CEO Greg Abel's active approach to portfolio management, contrasting with Warren Buffett's previous preference to maintain substantial cash reserves as "oxygen" for the portfolio. The company's strong financial performance supports its aggressive investment strategy across multiple sectors including technology, homebuilding, and financial services.
Michael Burry, the investor who predicted the 2008 subprime mortgage crisis, has expressed concerns about Berkshire's new direction under CEO Greg Abel. As reported by Yahoo Finance, Burry wrote on Substack that he has soured on Berkshire, stating "My biggest fear for Berkshire Hathaway was that when Warren finally stepped down, the successor would be too old and otherwise not Warren, so would not have his patience for the fat pitch. I believe this fear has come true." Burry acknowledged that Abel has spent only some of the cash pile, with the pile hitting a record $397 billion in the first quarter before falling to roughly $360 billion in the second. He called Abel's early moves "framing moves," not real investments, though he is not recommending anyone short the stock. Both Berkshire Hathaway and Alphabet shares fell more than 3% this week despite Berkshire's first major buyback in two years, as reported by Yahoo Finance. The drop came despite Berkshire's aggressive investment strategy and strong financial performance, with Alphabet shares also recently pulling back on unrelated AI departures. Abel's moves could reflect a genuine strategic shift or cautious first steps, with Berkshire's next moves with its remaining cash likely to clarify which direction the company is heading.
