Berkshire Hathaway more than tripled its investment in Google's parent company Alphabet and acquired over $2.6 billion worth of Delta Air Lines stock during the first quarter, marking a significant shift in strategy under new Chief Executive Greg Abel. Abel took over from Warren Buffett at the start of the year, and the recent moves signal a departure from Buffett's historically cautious approach to tech and airline stocks.
Alphabet Stake Tripled
By the end of March, Berkshire held nearly 58 million Alphabet shares valued at approximately $17 billion, up from 17.8 million shares worth $5.6 billion three months earlier. This aggressive accumulation reflects Abel's greater comfort with technology investments compared to Buffett, who famously avoided tech stocks due to a lack of understanding. Buffett made an exception for Apple, recognizing the strong consumer loyalty to iPhones and computers.
Delta and Macy's Investments
Berkshire added nearly 40 million shares of Delta during the first quarter. Buffett had a tumultuous history with airline stocks, having invested heavily multiple times before ultimately selling. In 2008, he remarked that a farsighted capitalist would have shot down Orville Wright at Kitty Hawk, given the industry's struggle to maintain competitive advantages. Additionally, Berkshire established a new, small stake in Macy's worth nearly $55 million.
Portfolio Changes Under New Leadership
The conglomerate also sold stakes in Visa, Mastercard, Domino's Pizza, Amazon, and United Healthcare following the departure of investment manager Todd Combs late last year. Berkshire does not comment on quarterly portfolio moves, which are closely watched by investors seeking to emulate Buffett's picks. However, Abel's track record in operating utilities and industrial businesses may change that dynamic until he builds a reputation as a stock picker.
Market Reactions
Following the disclosure in a Securities and Exchange Commission filing, Macy's and Delta shares rose, while Alphabet's stock remained largely unchanged. Berkshire, based in Omaha, Nebraska, owns a diverse array of businesses including Geico, BNSF Railway, Precision Castparts, and retail brands like Helzberg Diamonds, See's Candy, and Dairy Queen.
