Berkshire Hathaway significantly expanded its investment in Alphabet during Q2, adding $17 billion through both private placement and open market purchases, making it the third-largest holding in its equity portfolio. Concurrently, the conglomerate increased stakes in Delta Air Lines and homebuilder Lennar, while continuing to divest from the financial sector. This strategic shift has drawn scrutiny from investors like Michael Burry, who questions CEO Greg Abel’s investment approach compared to Warren Buffett’s famed patience.
This analysis, part of the Warren Buffett Watch newsletter, delves into Berkshire Hathaway's latest portfolio adjustments.
Berkshire's $17 Billion Alphabet Expansion in Q2
Google parent Alphabet has ascended to become the third-largest holding in Berkshire Hathaway's extensive equity portfolio.
A Q2 portfolio disclosure to the SEC revealed that Berkshire now holds nearly 106 million Class A and Class C Alphabet shares, with a current market value of approximately $36.6 billion.
This substantial stake places Alphabet about $1.5 billion ahead of Coca-Cola's $35.1 billion holding. However, it still trails significantly behind Apple, valued at $69.7 billion, and American Express, at $51.9 billion, within Berkshire's diverse portfolio.
(Infographic depicting Berkshire Hathaway's portfolio distribution - content not available)
Approximately 60% of the 48.1 million shares acquired during the quarter were purchased directly from Alphabet through a $10 billion private placement sale announced in early June. This suggests that Berkshire also acquired roughly $7 billion worth of Alphabet shares on the open market.
(Infographic illustrating Alphabet acquisition details - content not available)
While Alphabet was the most significant addition this quarter, Berkshire also substantially increased its investment in Delta Air Lines, boosting that position by 44%, or about $1.6 billion. Its 57.3 million shares in Delta are currently valued at $5.1 billion.
Delta's return to Berkshire's portfolio in Q1 marked a reversal after Warren Buffett sold his airline holdings at a loss in Q1 2020 due to the severe impact of the COVID-19 pandemic on air travel. Buffett famously quipped in his 2007 letter to shareholders that a "farsighted capitalist" at Kitty Hawk should have "shot Orville down" to save future investors from the airline industry's challenges.
(Infographic detailing Delta Air Lines investment - content not available)
Other notable additions include a 142% jump in Macy's holdings, though due to its smaller size, this only amounted to an increase of around $100 million. Additionally, in the same quarter Berkshire announced its $6.8 billion acquisition of Taylor Morrison Home, it added roughly $280 million to its stake in homebuilder Lennar.
Financial Sector Trims Continue
Berkshire's recent trend of divesting from financial holdings persisted into Q2. The conglomerate reduced its Ally Financial stake by 7% and significantly cut its Capital One holding by 58%.
Bank of America also saw a modest reduction of 5.9%. However, given the substantial size of this holding, it resulted in a $1.7 billion decrease in the stake's value, making it the largest dollar cut of the quarter.
(Infographic showing financial holdings reductions - content not available)
This quarter marks the eighth consecutive period Berkshire has reduced its Bank of America stake, now down 53% overall.
The complete portfolio snapshot as of June 30 is detailed below.
'Big Short' Investor Michael Burry Expresses Concern
Michael Burry, known for his prescient bet against the housing market, has voiced dissatisfaction with how Berkshire Hathaway CEO Greg Abel managed the company's significant cash reserves during the second quarter.
In a recent Substack post on Sunday, Burry articulated his "biggest fear" that Warren Buffett's successor would lack the legendary investor's "patience for the fat pitch." He now believes this fear has materialized, leading him to conclude, "I do not find Berkshire an attractive investment going forward."
Burry, whose story was immortalized in "The Big Short" book and film, acknowledges that while "not too much of the cash pile has been spent" and approximately $360 billion remains, he is concerned that Abel's initial actions appear to be "more framing moves than investment moves." He clarified in the comments that he is not advising anyone to short Berkshire.
A cornerstone of Buffett's investment philosophy has always been the discipline to await highly favorable opportunities, akin to baseball legend Ted Williams waiting for a "fat pitch." As Buffett explained to the New York Times in 2007, investors have the luxury of not having to swing at every pitch. They can patiently wait for the perfect opportunity without being called out.
An archival clip features Buffett and Charlie Munger discussing their unique patience compared to typical money managers.
Stock Performance Despite Buybacks
Some Wall Street investors may share Burry's apprehensions. Both classes of Berkshire shares fell over 3% this week following the company's Q2 spending report, despite the inclusion of the first significant stock buybacks in two years.
(Infographic showing Berkshire stock performance over four weeks - content not available)
(Infographic showing Berkshire stock performance over twelve months - content not available)
BRK.A stock price: $755,570.01
BRK.B stock price: $504.03
BRK.B P/E (TTM): 12.67
Berkshire market capitalization: $1,078,750,128,699
Berkshire Cash as of June 30: $365.5 billion (Down 8.0% from March 31)
Excluding Rail Cash and Subtracting T-Bills Payable: $359.2 billion (Down 3.8% from March 31)
Berkshire repurchased $4.5 billion of its shares in Q2 2026.
(All figures are as of the date of publication, unless otherwise indicated)
BERKSHIRE'S TOP EQUITY HOLDINGS - Aug. 14, 2026
(Infographic detailing Berkshire's top equity holdings - content not available)
This section lists Berkshire's top disclosed publicly traded stocks in the U.S. and Japan, by market value, based on the latest closing prices.
Holdings are as of June 30, 2026, as reported in Berkshire Hathaway's 13F filing on August 14, 2026, with the exception of Mitsubishi, which is dated August 28, 2025.
For the full list of holdings and their current market values, please refer to CNBC.com's Berkshire Hathaway Portfolio Tracker.
QUESTIONS OR COMMENTS
Please direct any questions or comments regarding this newsletter to alex.crippen@nbcuni.com. (Please note, questions or comments cannot be forwarded directly to Mr. Buffett.)
To subscribe to this newsletter, you can sign up here.
Buffett's highly recommended annual letters to shareholders are available on Berkshire's website.
