Berkshire’s quarterly update confirms a sharp pivot in strategy, as the firm transitioned from a net seller of stocks over the past 14 quarters to a net buyer of $23.5 billion in equities. The Alphabet position, initiated in the third quarter of 2025, reflects a rare departure from Buffett’s historical avoidance of tech firms that fall outside his traditional circle of competence. University of Maryland finance professor David Kass suggests that Buffett, who still maintains a daily office presence, continues to steer the portfolio alongside investment manager Ted Weschler.
In section Finance faces
Warren Buffett’s Final Act: The Massive Alphabet Gamble
With 106 million shares now tucked into Berkshire Hathaway’s portfolio, Alphabet has emerged as the company’s third-largest holding. The nearly $38 billion stake suggests that while Warren Buffett has officially stepped down as CEO, he remains the primary architect behind Berkshire’s most significant investment moves.
The Shift in Capital Deployment
This aggressive deployment of capital extends beyond Alphabet, as Berkshire also executed $4.5 billion in stock buybacks and finalized an $8.5 billion cash acquisition of homebuilder Taylor Morrison. These moves helped trim the firm’s record cash reserves from $380 billion to $365 billion. Whether this resurgence marks a fundamental reassessment of market value by Buffett or a tactical shift by his successor, Greg Abel, the scale of the Alphabet wager signals that the "Oracle of Omaha" is not yet finished shaping the company’s financial trajectory.
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