Berkshire Hathaway Under New Leadership: Alphabet, Delta Get Boost

Berkshire Hathaway's holdings have seen significant changes in the second quarter under new CEO Greg Abel.

The company added to its position in Alphabet, which is now among its top three holdings. Berkshire bought approximately $17 billion worth of Alphabet stock, bringing its total position to 106 million shares. At $36 billion in total, it has become its third-largest holding, behind just Apple and American Express.

This move is notable for Berkshire, as it typically shies away from the tech sector. However, Alphabet's strong competitive advantage and reasonable earnings multiple make it a sensible addition to the portfolio.

Berkshire also added 17.5 million shares of Delta Air Lines, bringing its total to 57 million. Although not one of Berkshire's largest holdings, this position accounts for over 1% of the portfolio.

The company continued to reduce its position in Bank of America, selling more than 30 million shares and trimming its stake by about 6%. This reduction is part of a trend that has been ongoing at Berkshire, with its position in Bank of America diminishing over the past couple of years.