Berkshire Hathaway Buys $10 Billion in Alphabet Stock

Berkshire Hathaway transitioned to a net buyer of stocks under the leadership of CEO Greg Abel, highlighted by a $10 billion private placement acquisition of Alphabet Inc. shares. The transaction bypassed the open market, splitting the investment equally between $5 billion of Class A shares at $351.81 per share and $5 billion of Class C shares at $348.20 per share.

This private placement, combined with public market purchases from the second quarter of 2026, elevated Alphabet to the third-largest position in the company's portfolio. Alphabet now ties with Coca-Cola, each representing 10.2% of the equity holdings. The aggressive expansion into the parent company of Google signals a strategic shift from the historical approach of former CEO Warren Buffett, who typically avoided technology stocks he did not fully understand.

To fund these acquisitions, Abel utilized the company's cash reserves, which decreased from nearly $400 billion to $365.5 billion. Additionally, Berkshire Hathaway conducted share buybacks at higher valuation ratios to counter slowing book value growth resulting from previous cash hoarding.