Berkshire Hathaway Makes Massive Bet on Google Parent Alphabet

2026-08-17 companies

Omaha, Monday, 17 August 2026.
Berkshire Hathaway ended a 14-quarter net-selling streak by purchasing $20 billion in equities, elevating Alphabet to its third-largest holding with an $83% stake increase worth nearly $38 billion.

Strategic Shift to Technology

Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) significantly expanded its stake in Alphabet Inc. (NASDAQ: GOOGL) during the second quarter of 2026, elevating the tech giant to its third-largest U.S.-listed equity position behind Apple Inc. and American Express Co. [1][7]. According to regulatory filings released on 14 August 2026, the conglomerate increased its holdings to approximately 106 million shares, valued at $37.9 billion as of 30 June 2026. [1][7]. This move represents an 83% increase in the stake during the quarter, highlighting growing institutional confidence in Alphabet’s core search dominance and enterprise artificial intelligence monetization strategy. [6][7]. The investment included a $10 billion private purchase intended to support Alphabet’s investments in artificial intelligence infrastructure, alongside open market acquisitions. [2][7]. Warren Buffett, now Chairman, confirmed he was behind the Alphabet bet, with CEO Greg Abel’s support, marking a significant pivot toward big tech under the new leadership structure. [1][6].

Liquidity and Capital Allocation

In a notable departure from recent trends, Berkshire Hathaway returned to being a net buyer of equities in Q2 2026 with nearly $20 billion in net purchases, ending a 14-quarter streak as a net seller. [1][6]. The company’s cash position dropped to $365.5 billion by 30 June 2026, down from $397.4 billion three months prior, representing a decrease of 8.027 percent. [1][7]. This capital deployment coincided with Berkshire Hathaway reporting Q2 2026 earnings results on 8 August 2026, showing an increase in both net earnings and revenue for the period. [1]. Additionally, the company accelerated stock buybacks, repurchasing $4.5 billion of its own shares during the quarter, the highest quarterly buyback figure since 2021. [6][8]. Financial institutions adjusted price targets for Berkshire Hathaway shortly after, with UBS raising its target on 10 August 2026. [1].

Portfolio Diversification and Market Reaction

Beyond technology, Berkshire Hathaway increased its position in Delta Air Lines by 44% to 57.3 million shares, worth approximately $5.4 billion. [1][7]. The conglomerate also added to positions in Lennar, initiated a stake in D.R. Horton, and completed the acquisition of Taylor Morrison, signaling increased exposure to the housing sector. [1][7]. However, the aggressive capital allocation drew criticism from investor Michael Burry on 9 August 2026, who stated he no longer finds the company an attractive investment. [2]. Burry cited concerns regarding the reduction of the company’s cash pile and the patience required for investment opportunities. [2]. Despite the criticism, Berkshire’s portfolio changes reflect a decisive strategy to deploy capital across technology, travel, and housing segments as of mid-2026. [6][8].

Sources

Berkshire Hathaway Alphabet investment