Warren Buffett's Berkshire Hathaway Just More Than Tripled Its Stake in Alphabet

"The conglomerate ended the first quarter sitting on a staggering $397.6 billion cash pile, according to its latest earnings release and SEC filings. That raises the obvious question: If Berkshire is unloading stocks almost everywhere else, why is it buying more of Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL)? And not just a little more, either. Berkshire more than tripled its stake in Alphabet during the first quarter while simultaneously slashing exposure to sectors that often struggle during economic slowdowns."

"Berkshire's latest 13-F filing with the SEC looked less like routine portfolio management and more like spring cleaning with a flamethrower. Regardless of how you look at it, this was one of the largest portfolio purges Berkshire has made in years. Surprisingly, though, Abel wasn't simply hoarding cash under the corporate mattress. Berkshire Went Shopping for Alphabet Stock."

"According to the 13-F filing, the company boosted its holdings in Alphabet's Class A shares (GOOGL) to 54.2 million shares valued at approximately $15.6 billion. Berkshire also purchased 3.6 million Class C shares (GOOG), worth roughly another $1 billion. That brings Berkshire's total Alphabet investment to around $16.6 billion, instantly making it one of the five largest positions in the portfolio."

"In other words, Berkshire sees Alphabet as both defensive and growth-oriented at the same time - a rare combination. The logic isn't hard to see. Alphabet generated $64.4 billion in free cash fl"

Berkshire Hathaway ended the first quarter with $397.6 billion in cash, reflecting preparation for a tougher economic environment. The company reduced positions across much of its portfolio, described as a large-scale portfolio purge. Despite selling elsewhere, Berkshire sharply increased its investment in Alphabet. It boosted holdings of Alphabet Class A shares (GOOGL) to 54.2 million shares valued at about $15.6 billion and added 3.6 million Class C shares (GOOG) worth roughly $1 billion. Combined, the Alphabet stake totaled about $16.6 billion, making it one of the five largest portfolio positions. The increase suggests Alphabet is viewed as both defensive and growth-oriented, supported by strong free cash generation.

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