2 weeks ago
Berkshire Hathaway boosts Alphabet and homebuilder stakes, trims banks
Berkshire Hathaway is a very big company that buys parts of other companies.
A man named Warren Buffett made it famous, but this year a new leader named Greg Abel took over.
Berkshire decided to buy a lot more of a company called Alphabet, which owns Google.
They bought about 48 million new Alphabet shares, and now those shares are worth almost 38 billion dollars.
Alphabet says it needs 80 billion dollars to build computers for its artificial intelligence projects.
Berkshire also bought more shares in companies that build homes, like Lennar, and bought a whole homebuilding company called Taylor Morrison for 6.8 billion dollars.
They also bought more shares in Delta Air Lines and Macy's stores.
But Berkshire sold or reduced its shares in some banks and other companies, and sold all its shares in the drink company Constellation Brands.
Warren Buffett is still the chairman, but Greg Abel is now running things.
Berkshire Hathaway added roughly 48.1 million Alphabet shares in the second quarter, bringing its total to about 106 million shares valued at roughly $37.76 billion as of June 30.
CEO Greg Abel, who took over from Warren Buffett at the start of the year, agreed in June to make a $10 billion stock investment in Alphabet.
Berkshire increased its stake in homebuilder Lennar by nearly 30%, established a small new stake in D.R. Horton worth $580,504, and completed a $6.8 billion acquisition of Taylor Morrison in July.
Berkshire sharply increased its stakes in Delta Air Lines and Macy's, worth about $5.37 billion and $173 million respectively as of June 30.
Berkshire reduced stakes in Bank of America (about 6%), Ally Financial (about 6.9%), and Capital One Financial (58%), sold all 632,890 Constellation Brands shares, and trimmed Kroger, Nucor, and DaVita.
- Who
- Berkshire Hathaway, led by CEO Greg Abel, with Warren Buffett remaining chairman and largest shareholder.
- What
- Berkshire Hathaway boosted its stake in Alphabet and U.S. homebuilders while trimming stakes in financial companies and other holdings.
- Where
- Omaha, Nebraska-based Berkshire Hathaway; investments in U.S. companies including Alphabet, homebuilders, Delta Air Lines, and Macy's.
- When
- During the April-June second quarter, with a regulatory filing released late Friday; the Taylor Morrison acquisition was completed in July.
- Why
- Berkshire expanded holdings in Alphabet and homebuilders as part of its investment strategy, while Alphabet plans to raise $80 billion for AI computing infrastructure.
Key facts
- Company
- Berkshire Hathaway (Omaha, Nebraska)
- CEO
- Greg Abel (took over from Warren Buffett at start of year)
- Alphabet stake
- ~106 million shares valued at ~$37.76 billion as of June 30 (up from 17.8 million shares worth $5.6 billion at end of December)
- Q2 Alphabet share purchase
- ~48.1 million shares
- Taylor Morrison acquisition
- $6.8 billion, completed in July
- New D.R. Horton stake
- $580,504 as of June 30
- Delta Air Lines and Macy's stakes
- ~$5.37 billion and ~$173 million respectively
- Alphabet AI capital plan
- $80 billion raise for AI computing infrastructure
Sources
Related news
Buffett's Berkshire Buys Google Parent Alphabet, Its Third-Largest Holding
Berkshire Hathaway's New CEO Greg Abel Puts Cash to Work
Berkshire Hathaway's Cash Pile Declines as Greg Abel Deploys Capital
Bill Ackman Reshapes Pershing Square Portfolio, Swapping Alphabet for Netflix
Gates Foundation Trust Holds $34 Billion Across 24 Stocks
Alphabet Shares Slide as AI Talent Departures Fuel Investor Concerns
Bank of America Vice President Killed in Times Square Stabbing
Times Square Stabbing Leaves One Dead; Suspect Had Ominous Posts
Social Media Posts Preceded Fatal Times Square Stabbing Rampage
Times Square Stabbing Kills Bank Executive as Police Shoot Suspect
Beyond Nvidia, power and cooling firms benefit from data-centre boom
