Berkshire Hathaway deploys cash reserves to expand Alphabet stake

Berkshire Hathaway is beginning to deploy its significant cash reserves under the leadership of CEO Greg Abel. As of the end of the second fiscal quarter, the conglomerate held approximately $366 billion in liquidity, a decrease from $397 billion at the start of the period.

A major portion of this $31 billion reduction was driven by a $17 billion expansion of its stake in Alphabet, making it the company’s third-largest holding. Other notable equity moves included increasing positions in Delta Air Lines and Macy’s, as well as expanding stakes in Lennar and The New York Times Company.

In the energy sector, Abel stated that Berkshire is interested in providing power to AI data center hyperscalers, provided there is no negative impact on the rates paid by other utility customers. He emphasized that projects must also be welcomed by their host communities and manage water usage effectively.

Financially, Berkshire reported a 16% rise in second-quarter operating earnings compared to the previous year. While Apple remains the company’s largest public equity holding, representing over 20% of its portfolio, the firm's overall performance is increasingly tied to Abel’s capital allocation strategies for its $1.1 trillion enterprise.