Berkshire Hathaway has expanded its holdings in Google’s parent company, Alphabet, and strengthened its investment in the homebuilding sector. This information was revealed in the conglomerate’s latest investment portfolio update.
The Omaha, Nebraska-based company has also reduced its investments in financial stocks and several other companies during the April-June quarter, according to a regulatory filing from late Friday.
Investments in Alphabet
CEO Greg Abel, who took over from Warren Buffett earlier this year, agreed in June to a $10 billion investment in Alphabet, bolstering the stake Berkshire started building last fall. In the second quarter, Berkshire acquired approximately 48.1 million shares in Alphabet, increasing its total holdings to about 106 million shares valued at around $37.76 billion as of June 30. By comparison, at the end of December, Berkshire held 17.8 million shares worth $5.6 billion. Alphabet has set plans to raise $80 billion to support the computing infrastructure for its AI services.
Homebuilding Sector Growth
Berkshire has continued to increase its investments in the U.S. homebuilding sector. Its stake in homebuilder Lennar grew by nearly 30% in the second quarter, while a new investment in D.R. Horton was valued at $580,504 at the end of June. In July, Berkshire completed a $6.8 billion acquisition of homebuilder Taylor Morrison.
Other Investment Adjustments
In the second quarter, Berkshire significantly increased its shares in Delta Air Lines and Macy’s, with stakes valued at $5.37 billion and $173 million respectively as of June 30.
However, Berkshire also reduced its portfolio, including its stakes in several companies compared to the first quarter. Reductions occurred for supermarket operator Kroger, steel manufacturer Nucor, and dialysis company DaVita. The company entirely divested its holding of 632,890 shares in beverage company Constellation Brands.
Among financial companies, Berkshire decreased its investments in Bank of America and Ally Financial by approximately 6% and 6.9%, respectively, and significantly reduced its shares in Capital One Financial by 58%.
Investors have typically followed Berkshire’s portfolio due to its past strategies under Warren Buffett, who remains chairman and largest shareholder. Although Berkshire owns several businesses, including Geico and BNSF railroad, it refrains from discussing its portfolio changes.