Key Highlights
- Berkshire’s Alphabet stake expanded 83% to 106 million shares valued at $37.9 billion
- The position now ranks as Berkshire’s third-largest equity investment after Apple and American Express
- The conglomerate purchased a net $20 billion in equities, marking its largest quarterly investment since 2022
- Delta Air Lines position grew 44% to reach $5.4 billion in value; Lennar holdings increased almost 30%
- Cash reserves declined from $397 billion to $365 billion as capital deployment accelerated
In a dramatic shift from recent years of cautious capital allocation, Berkshire Hathaway executed its most aggressive stock-purchasing campaign since 2022 throughout Q2 2026, with a substantial expansion of its Alphabet investment leading the charge. The investment giant now controls approximately 106 million Alphabet shares valued at $37.9 billion, representing an 83% surge in holdings over a single quarter.
This significant expansion resulted partially from a $10 billion private placement transaction completed in early June, through which Alphabet offered discounted shares to finance its artificial intelligence infrastructure expansion. Beyond this private deal, Berkshire acquired an additional 19.6 million shares through regular market transactions during the same period.
The tech giant now occupies the third-largest position in Berkshire’s U.S.-listed equity portfolio based on market capitalization. Apple maintains the top spot at approximately $66 billion, followed by American Express at roughly $51 billion.
Warren Buffett, currently serving as chairman following his transition of CEO responsibilities to Greg Abel at the beginning of 2026, confirmed his endorsement of the Alphabet investment decision. Abel expressed full support for the strategic move.
Alphabet’s share price has surged approximately 170% throughout the preceding three years, fueled by market enthusiasm surrounding its competitive positioning in the artificial intelligence sector.
Aviation and Real Estate Sectors Receive Additional Capital
Berkshire‘s investment activity extended well beyond Alphabet during the quarter. The company expanded its Delta Air Lines position by 44%, elevating total holdings to 57.3 million shares with a market value of approximately $5.4 billion as of June 30.
This expansion represents a significant return to the aviation industry for Berkshire, which notably liquidated its entire airline portfolio during the initial stages of the COVID-19 pandemic.
Within the residential construction sector, Berkshire expanded its Lennar Class A shareholdings by nearly 30% to 13.1 million shares, representing approximately $1.19 billion in value. The firm also initiated a modest new position in D.R. Horton, acquiring 3,600 shares by quarter’s conclusion.
New Leadership Brings Strategic Evolution
This quarter represented a watershed moment, marking Berkshire’s first period as a net equity purchaser following 14 consecutive quarters of net selling activity. The company deployed $23.5 billion toward share acquisitions while divesting only $3.7 billion, signaling a distinct departure from the conservative approach that characterized Buffett’s final years as chief executive.
Berkshire also repurchased $4.5 billion of its own shares, representing the most substantial quarterly buyback program since 2021.
The firm’s cash holdings decreased from a peak of $397.4 billion to $365.5 billion. Berkshire additionally finalized its acquisition of Taylor Morrison, a homebuilder headquartered in Arizona, during this timeframe.
Regarding divestitures, Berkshire reduced its Capital One and Nucor positions by approximately 50%, decreased holdings in Bank of America and Kroger, and completely eliminated its Constellation Brands investment.
This portfolio disclosure validated expectations among numerous investors: a more proactive Berkshire emerging under Abel’s stewardship, actively deploying accumulated cash reserves following an extended period of relative inactivity.
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