Abel Jettisons Amazon, Loads Up on Alphabet Amid AI Ambitions

Greg Abel, Warren Buffett's successor at Berkshire Hathaway, made significant changes to the company's $358 billion investment portfolio after Buffett's retirement on December 31. One of the notable moves was the sale of Amazon stock in the first quarter, which saw a more than sixfold increase in Berkshire's stake in Alphabet, Google's parent company.

Abel's decision to sell Amazon shares may have been driven by profit-taking, as the stock had surged 150-200% since Berkshire's initial buy in 2019. However, it's also possible that the move was due to Todd Combs' departure from Berkshire in December for JPMorgan Chase.

Combs was a key investment manager alongside Ted Weschler, and Abel may have chosen to sell Amazon shares as part of a broader effort to reposition Berkshire's portfolio. On the other hand, Abel has shown a keen interest in Alphabet, which he sees as having a sustainable moat and significant artificial intelligence ambitions.

Between December 31 and September 25, Berkshire's stake in Alphabet grew from $5.59 billion to $36.37 billion, making it one of the company's most valuable holdings. Abel's enthusiasm for Alphabet is likely driven by its dominance in internet search, with a greater-than-91% share of global searches in August.