Berkshire Hathaway (BRK.A-N, BRK.B-N)said on Friday it boosted the size of its investment in Alphabet (GOOGL-Q) by 83% in the second quarter, making the parent of Google and YouTube its third-largest stock holding.
Berkshire said in a regulatory filing that it owned nearly 106 million Alphabet shares worth about USUS$37.8-billion as of June 30, up from 57.8 million shares three months earlier. The stake included a US$10-billion investment announced in June, to help Alphabet expand its AI infrastructure.
Apple remained Berkshire’s largest stock investment, worth US$66-billion at the end of June, followed by American Express at US$51.3-billion. Coca-Cola ranked fourth and Bank of America was fifth.
Berkshire also said it eliminated its year-and-a-half investment in alcoholic beverages producer Constellation Brands, while adding to investments in Delta Air Lines and Macy’s that it began in the first quarter.
The changes were disclosed in a filing describing Berkshire’s U.S.-listed stock holdings as of June 30, which comprised most of its US$323.8-billion equity portfolio.
Berkshire bought US$23.5 billion and sold US$3.7-billion of stocks in the second quarter, ending a 14-quarter stretch when it sold more stocks than it bought.
Chief Executive Greg Abel has begun reducing the enormous cash pile that his predecessor Warren Buffett left him when the legendary investor stepped down at year end.
Berkshire’s cash stake fell to US$364.7-billion on June 30 from US$380.2-billion on March 31, a decline also reflecting US$4.5-billion of stock buybacks.
Buffett remains Berkshire’s chairman. He told CNBC last month it was his idea to invest in Alphabet, a stake Berkshire began building in last year’s third quarter. Buffett also said he and Abel consult on how Omaha, Nebraska-based Berkshire allocates capital.
The Delta investment grew 44% in the second quarter to 57.3 million shares worth nearly US$5.4-billion, while the Macy’s investment more than doubled to about 7.3 million shares worth US$173 million.
Berkshire also bought more shares of home builder Lennar and disclosed a tiny — US$580,000 — stake in another home builder, D.R. Horton.
It reduced its holdings in Ally Financial, Bank of America, Capital One, kidney dialysis provider DaVita, grocer Kroger and steel maker Nucor.
Abel said in February he oversaw 94% of Berkshire’s stock holdings, while investment manager Ted Weschler handled 6%. Friday’s filing does not say who bought and sold which stocks.
Berkshire also owns dozens of businesses including the BNSF railroad, Geico car insurance, energy and manufacturing companies and retail brands such as Brooks, Dairy Queen, Fruit of the Loom and See’s.