Berkshire Hathaway (BRK.A, BRK.B) surprised markets in its latest regulatory filing(Warren Buffett's Stock Portfolio)by revealing a new position in Alphabet (GOOGL-US), Google’s parent company. The $4.3 billion stake makes Alphabet Berkshire’s 10th largest stock holding as of September, signaling a notable shift in portfolio composition as Warren Buffett prepares to step down as CEO at year-end.
Alphabet Joins Berkshire’s Portfolio
The move is striking given Buffett’s reputation for value investing and his historically cautious stance toward high-growth technology stocks. Alphabet’s shares have surged 46% this year, fueled by strong demand for AI applications and robust performance in its cloud business.
Market watchers believe the purchase was likely initiated by Berkshire investment managers Todd Combs or Ted Weschler, who have spearheaded the firm’s tech investments in recent years. The duo previously led Berkshire’s entry into Amazon (AMZN-US) in 2019, a position now worth $2.2 billion.
The Alphabet buy also echoes Buffett’s past reflections. He has admitted to missing early opportunities in Google despite recognizing the profitability of its advertising model—Geico, a Berkshire subsidiary, was one of Google’s early clients, paying $10 per click for ads.
Apple Stake Reduced
While adding Alphabet, Berkshire continued to trim its largest holding, Apple (AAPL-US). The firm reduced its stake by 15% in Q3, bringing the value of its holdings down to $60.7 billion. Buffett has significantly pared back Apple this year, selling nearly two-thirds of the position by year-end after reductions in the second quarter.
Despite the cuts, Apple remains Berkshire’s single largest stock asset, underscoring its importance to the portfolio even as Buffett rebalances exposure.
Other Adjustments
Berkshire also reduced its stake in Bank of America (BAC-US) by 6%, lowering the position to just under $30 billion. Smaller holdings in Verisign (VRSN-US) and DaVita (DVA-US) were trimmed as well.
The filing highlights a broader trend: Berkshire has been a net seller of equities for 12 consecutive quarters, reflecting elevated valuations in technology and growth stocks.
Buffett’s Transition and Abel’s Role
At 95, Buffett is expected to step down as CEO at the end of 2025, handing the reins to Greg Abel, currently vice chairman overseeing Berkshire’s non-insurance operations. Abel is widely seen as a steady hand who will preserve Berkshire’s conservative culture, though investors question whether he can replicate Buffett’s charisma and track record in capital allocation.
The succession adds weight to Berkshire’s recent portfolio moves, as investors look for clues about how the firm’s new-era investment strategy may evolve.
Outlook
Berkshire’s latest filing underscores a strategic pivot: trimming oversized positions in Apple and financials while selectively adding exposure to technology leaders like Alphabet. The adjustments reflect both valuation discipline and recognition of AI-driven growth opportunities.
For investors, the message is clear: Berkshire remains cautious, but it is not ignoring the technology wave. As Buffett prepares to step aside, the firm’s portfolio shifts may offer a preview of how Abel and his team will balance tradition with adaptation in the years ahead.