Berkshire Hathaway Crashes Party with Alphabet Investment
Berkshire Hathaway's top holdings have remained relatively stable over the past four years, but last quarter saw a significant shift as Alphabet (GOOG) entered the top five. The 'Magnificent Seven' technology giant now holds about 9.41% of Berkshire's portfolio.
The company added 24.5 million shares of Alphabet in Q2, increasing its stake by 45%. This brings Berkshire's total holdings to approximately 79 million shares, valued at $28.2 billion. Alphabet is the fourth-largest holding behind Apple (22%), American Express (17%), and Coca-Cola (11%).
Alphabet has been investing heavily in artificial intelligence infrastructure for its cloud business, which has depleted its free cash flow. The company reported a cash outflow of $5.8 billion in Q2, marking the first quarter since going public with negative free cash flow. CFO Anat Ashkenazi stated that Alphabet expects its free cash flow to remain under pressure due to these investments.