Berkshire Hathaway increased its holdings in Google parent Alphabet and US homebuilders while reducing positions in several financial companies and other stocks during the second quarter, according to the conglomerate's latest portfolio disclosures.
Berkshire Hathaway adds Alphabet and homebuilder shares, trims financial holdings
Berkshire Hathaway increased its holdings in Google parent Alphabet and US homebuilders while reducing positions in several financial companies and other stocks during the second quarter, according to the conglomerate's latest portfolio disclosures.
Berkshire bought roughly 48.1 million additional Alphabet shares in the second quarter, bringing its total holding to about 106 million shares valued at approximately $37.76 billion as of June 30. At the end of December, the Omaha, Nebraska-based conglomerate held just 17.8 million Alphabet shares, then worth $5.6 billion.
Chief Executive Officer Greg Abel, who succeeded Warren Buffett at the start of the year, agreed in June to make a $10 billion stock investment in Alphabet, adding to a stake Berkshire began building last autumn. Alphabet has said it plans to raise $80 billion to fund computing infrastructure for its artificial intelligence offerings.
In the homebuilding sector, Berkshire's holding in Lennar rose by nearly 30% during the second quarter, and the company established a new position in DR Horton, worth $580,504 at the end of June. Those moves follow Berkshire's $6.8 billion acquisition of homebuilder Taylor Morrison, completed in July.
Berkshire also increased its stakes in Delta Air Lines and Macy's, which were worth about $5.37 billion and $173 million, respectively, as of June 30. On the other side of the ledger, it trimmed holdings in supermarket operator Kroger, steel manufacturer Nucor, and dialysis company DaVita, and sold all 632,890 shares it held in beverage company Constellation Brands. Berkshire reduced its stakes in Bank of America and Ally Financial by around 6% and 6.9%, respectively, and cut its holding in Capital One Financial by 58%.
- The source does not state the total dollar value of shares sold or trimmed during the quarter.
- The source does not state the size of Berkshire's Lennar holding in absolute share or dollar terms before or after the increase.
- The source does not state the dollar value of the DR Horton position at the time it was established, only as of June 30.
- The source does not state the rationale given by Berkshire or Abel for reducing the Capital One Financial stake by 58%.
- The source does not state when the Taylor Morrison acquisition closed relative to the second-quarter portfolio changes, beyond noting it was completed in July.
- The source does not state whether Berkshire issued any public comment on the overall portfolio realignment.
Read the original at The Times of India