Alphabet Surges as Berkshire Hathaway's Top Holding
Warren Buffett's successor, Greg Abel, oversees Berkshire Hathaway's portfolio, which has seen significant changes in recent quarters. The company's latest 13-F filing shows that just five stocks make up 72% of its holdings, a trend that has persisted for over 60 years.
Among these top holdings is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), the parent company of Google. Berkshire Hathaway has not traded shares of Coca-Cola or American Express since the 1990s and has been steadily selling Bank of America and Apple shares in recent quarters.
Alphabet stands out among its peers due to its dominance in digital advertising, which generated 68% of its revenue in Q2 2026. Additionally, Google Cloud has become a major revenue driver, accounting for 21% of the company's revenue in Q2 2026, an increase of 82% from the previous year.
However, Alphabet's capital expenditures (capex) have raised some concerns. The company increased its capex guidance to $195 billion to $205 billion this year, following $91 billion in 2025 spending. This has led to a significant increase in long-term debt, reaching $98 billion from $47 billion six months ago.
Despite these concerns, Alphabet's positive free cash flow and low price-to-earnings (P/E) ratio of 17 make it an attractive investment opportunity. The company's AI leadership and revenue growth have solidified its position in the industry, making it a top pick among Berkshire Hathaway's top holdings.