Inside Berkshire's Alphabet Gambit: Buffett Still Pulling the Strings as Abel Steps Into the Spotlight
Published on 09/03/2026 at 00:50 | Editorial boerse-global.de
Warren Buffett may have handed over the chief executive title, but the 95-year-old investor is still the one calling the shots when it comes to Berkshire Hathaway's stock portfolio. That much became clear this week when Greg Abel, the conglomerate's new CEO, confirmed in a CNBC interview that Buffett personally initiated the company's massive bet on Alphabet — a position that has swiftly become the third-largest holding in Berkshire's equity book.
The revelation lands as investors digest a striking strategic pivot. After 14 consecutive quarters of net selling, Berkshire flipped to offense in the second quarter of 2026, deploying roughly $20 billion into new positions. The stock has slipped about 1.1% since the shift was disclosed three weeks ago, but the more consequential story may be who is behind the wheel.
A Personal Project From Omaha
Alphabet, it turns out, is Buffett's handiwork. The position ballooned by 224% in the first quarter of 2026, growing from 17.8 million shares to 58 million. A $10 billion private placement followed in June, and by the end of the second quarter Berkshire held roughly 106 million shares in the Google parent, valued at about $37.8 billion. Buffett has acknowledged he wishes he had gotten in earlier.
The concentration in a single technology giant marks a departure from Buffett's historically cautious stance toward the sector. That the decision came from him personally — rather than from Abel, who now runs the day-to-day operations — underscores how capital allocation remains very much Buffett's domain even as the leadership transition at the top takes hold.
Abel, for his part, framed the investment in straightforward terms: Alphabet is a "significant player" in artificial intelligence. Berkshire first dipped into the stock roughly 15 months ago, securing a $10 billion stake at a 6.5% discount through a private placement. The second-quarter buying spree added another $17 billion worth of shares.
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Tech In, Banks Out
The Alphabet expansion came alongside a notable retreat from financials. Berkshire cut its Capital One stake by 58%, sold 30.2 million Bank of America shares, and trimmed its Ally position by 7% during the same period. The management's explanation, now on the record, is that technology rather than financials is where the opportunity lies.
The portfolio reshuffling has occurred against a mixed operating backdrop. Second-quarter operating earnings came in 16.3% above the prior-year level — or 5.2% on a currency-adjusted basis — yet the stock has given back roughly 2.3% since those results were published about a month ago. Berkshire Hathaway Energy posted a 27% gain, and the BNSF railroad division advanced 6%. Insurance results were less flattering: GEICO's combined ratio deteriorated to 91.2%, and underwriting earnings fell 13%.
Powering the AI Boom
Abel used the interview to sketch out a growth thesis for the energy division, which he sees as a direct beneficiary of surging electricity demand from data centers. In Iowa alone, data centers accounted for 8% of total electricity load in 2025. Berkshire Hathaway Energy operates 32,400 megawatts of capacity serving 5.4 million customers, with roughly $33.5 billion in planned investments across 2025 and 2026.
The CEO acknowledged, however, that the buildout faces "significantly more headwinds" from political resistance. More than 4,700 data centers now operate across the United States, and New York has imposed a moratorium on new facilities. Abel stressed that hyperscalers should be served without pushing costs onto other ratepayers — a concession to the growing backlash.
Japan: Calm Despite the Yield Shock
On Japan, Abel struck a reassuring tone. Japanese ten-year government bond yields have climbed above 3%, touching a three-decade high, while the comparable US yield sits at 4.8%. Berkshire holds stakes of more than 10% in each of the five major trading houses — Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo — and Abel said none of them views the rising yields as a fundamental challenge.
The company maintains a yen-denominated bond portfolio of roughly $15 billion with an average maturity exceeding five years and stands ready to issue additional yen debt if needed. Berkshire also holds a 2.49% stake in Tokio Marine as part of a strategic partnership.
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A Thinning War Chest
The famous cash pile, meanwhile, is beginning to shrink. Berkshire's reserves fell from a record $397.4 billion in the first quarter to $365.5 billion by the end of the second — an 8% decline reflecting the stepped-up buying and deal activity. (Abel cited a slightly lower figure of $364.7 billion in the interview.) The company completed its $6.8 billion all-cash acquisition of homebuilder Taylor Morrison Home Corporation in July, marking the first major deal under Abel's operational leadership.
Abel also signaled confidence in Berkshire's own stock, describing it as undervalued and noting that the company repurchased $4.5 billion worth of shares in the second quarter. He acknowledged that US consumers remain strained and the housing market is still bumpy — but the overall message was one of conviction.
For investors, the picture is now clearer on both fronts: Abel runs the operations and is putting his own stamp on dealmaking, but the multibillion-dollar decisions in the stock portfolio still trace back to Buffett. The Alphabet bet, in particular, carries his fingerprints — a reminder that even as Berkshire enters a new era, the old master remains very much in the game.
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