Berkshire Hathaway has revealed a new multibillion-dollar position in Alphabet while continuing to reduce its long-standing investment in Apple, marking a significant shift in the final months of Warren Buffett’s six-decade tenure as chief executive.
The company’s latest filing showed it held 17.85 million Alphabet shares as of September 30, representing a stake worth roughly $4.3 billion.
The disclosure arrives as Berkshire prepares for its leadership transition, with Greg Abel set to assume the top role on January 1.
Apple Trimming Continues Despite Remaining Largest Holding
Alongside the new Alphabet stake, Berkshire reported another reduction in its Apple holdings.
The company cut its position to 238.2 million shares, down from 280 million in the prior quarter.
This continues a multiyear trend in which Berkshire has sold nearly three-quarters of the more than 900 million Apple shares it once owned.
Even after the reductions, Apple remains Berkshire’s largest individual stock holding.
The value of the position stood at approximately $60.7 billion at the end of the third quarter.
The adjustments form part of a wider reshuffling of Berkshire’s substantial U.S. equity portfolio, which totaled $283.2 billion at the end of September.
Alphabet Becomes a Top Berkshire Holding
The new investment in Alphabet places the Google parent among Berkshire’s ten largest U.S.-listed stock positions.
The decision drew attention because Buffett has historically avoided major bets on technology giants.
He has long categorized Apple as more of a consumer products company, allowing it to fit within his preferred investment philosophy.
The Alphabet position suggests either a strategic shift or increased involvement from Berkshire’s investment managers Todd Combs and Ted Weschler, or from CEO-designate Greg Abel.
Buffett typically handles larger investments himself, but the filing does not clarify who made the purchase.
Past Regrets and New Moves
At Berkshire’s 2019 shareholder meeting, Buffett and the late Charlie Munger openly expressed regret over missing early opportunities to invest in Google.
“We screwed up,” Munger said.
“He’s saying we blew it,” Buffett replied.
That long-standing sentiment makes the new Alphabet stake notable as Berkshire has finally moved into a company it previously admired from the sidelines.
Alphabet’s shares saw a modest lift in after-hours trading following the disclosure, a reaction often seen when Berkshire establishes new positions.
Selling Bank of America and Other Portfolio Changes
The filing also highlighted broader shifts across Berkshire’s holdings.
The company bought about $6.4 billion worth of stocks during the third quarter but sold roughly $12.5 billion, marking its twelfth consecutive quarter as a net seller.
A substantial portion of the sales likely came from Apple.
Berkshire also sold around 6% of its Bank of America stake, extending reductions that began in the same quarter last year.
Bank of America remains Berkshire’s third-largest stock position despite the selling.
The conglomerate exited its position in homebuilder D.R. Horton while increasing its investments in several companies, including insurer Chubb and restaurant chain Domino’s Pizza.
Record Cash Holdings Signal Cautious Strategy
As Berkshire trims major holdings and scales back equity exposure, its cash reserves have swelled to a record $381.7 billion.
This buildup suggests Buffett and his team remain cautious about market valuations.
The firm has not repurchased its own stock in more than a year and has gone nearly a decade without executing a major acquisition.
The conservative stance underscores Berkshire’s belief that opportunities may be limited at current prices.
The growing cash position also gives incoming CEO Greg Abel considerable flexibility as he prepares to take control of the sprawling conglomerate.
Preparing for a New Era at Berkshire Hathaway
The latest report marks the final detailed portfolio update under Buffett’s leadership.
He will hand over a company that owns close to 200 businesses, including the BNSF railroad, energy and utility firms, major manufacturing operations, and consumer brands such as Dairy Queen, See’s Candies, and Fruit of the Loom.
The shift toward Alphabet, the trimming of Apple, and the massive accumulation of cash together signal an important evolution in Berkshire’s approach as it moves into a post-Buffett era.
The coming years will reveal how Greg Abel interprets Berkshire’s long-standing investment philosophy and whether the latest moves represent tactical adjustments or the beginning of a broader strategic pivot.
