Berkshire Hathaway Boosts Alphabet Stake

Berkshire Hathaway Inc. boosted its Alphabet stake and accelerated capital deployment in the quarter ended June 30, 2026, reversing a 14-quarter net-selling streak and increasing buybacks and stock purchases under new CEO Greg Abel.

Q2 Results and Capital Deployment

Berkshire reported net earnings attributable to shareholders of $25.7 billion for the quarter ended June 30, 2026, with operating earnings of $13.0 billion, according to its August 8 news release. Net earnings per average equivalent share were $17,868 for Class A and $11.91 for Class B. The company repurchased about $4.5 billion of its own shares in the quarter, bringing six-month buybacks to roughly $4.8 billion, and noted additional repurchases in July.

Greg Abel became CEO on January 1, 2026, succeeding Warren Buffett, who retired as CEO on December 31, 2025, and remained chairman. Under Abel, Berkshire shifted from net selling to net buying of public equities, making net equity purchases of approximately $19.8–$20.0 billion—about $23.5 billion in purchases less $3.7 billion in sales—as it began deploying a large cash balance.

The company’s Form 10-Q for the quarter detailed segment operating earnings: insurance underwriting $1.7 billion (down from $2.0 billion a year earlier); insurance investment income $3.1 billion (down from $3.4 billion); BNSF railroad $1.6 billion (up from $1.5 billion); Berkshire Hathaway Energy $891 million (up from $702 million); manufacturing, service, and retailing $4.5 billion (up from $3.6 billion); and other operations $1.3 billion (up from $32 million).

Alphabet Position and Portfolio Shifts

Regulatory filings show Berkshire held nearly 106 million Alphabet shares valued at about $37.8 billion as of June 30, 2026, up 83% from roughly 58 million shares three months earlier. Alphabet ranked among Berkshire’s five largest equity holdings alongside American Express, Apple, Bank of America, and Coca-Cola. Some reports place Alphabet as Berkshire’s third-largest U.S.-listed holding by market value.

The increase in Alphabet exposure largely reflected a $10 billion private stock purchase tied to Alphabet’s June capital raise, supplemented by open-market buys. Berkshire also expanded its housing and other bets: after quarter-end, it completed a $6.8 billion acquisition of homebuilder Taylor Morrison in July 2026, opened a small position in D.R. Horton, and boosted its Lennar stake by nearly 30%. The company also enlarged its Delta Air Lines holding to about 57 million shares, valued near $5.4 billion, while trimming and reshuffling other positions.

Together, these purchases, buybacks, and the Taylor Morrison deal mark a decisive shift toward deploying cash rather than holding it, signaling a more active capital-allocation strategy under Abel.

Homebuilder Bets and M&A

Berkshire’s $6.8 billion acquisition of Taylor Morrison, completed in July 2026, expanded its exposure to traditional site-built homebuilding beyond its existing Clayton Homes and housing-related businesses. The company also established a new small stake in D.R. Horton and increased its Lennar position by nearly 30%, reflecting a broader housing sector focus.

Other portfolio moves included a 44% increase in Berkshire’s Delta Air Lines stake to about 57 million shares, valued around $5.4 billion. The company reduced holdings in Bank of America and Kroger, exited a smaller stake in Constellation Brands, and added significantly to Lennar and Macy’s positions.

These changes, disclosed in Berkshire’s 13F filing for the quarter ended June 30, 2026, illustrate a strategic rebalancing and active deployment of capital under the new CEO.

Greg Abel emphasized that Berkshire’s large cash position does not signal a retreat from investing but a disciplined approach to pursuing opportunities for shareholders’ benefit.