Following Warren Buffett’s retirement, Berkshire Hathaway’s new CEO Greg Abel deployed capital to end a 14-quarter net selling streak, purchasing Alphabet shares that make the tech giant the conglomerate’s third-largest holding while steadily paring down its Bank of America stake.
The rhythm of Wall Street changes when the largest capital allocator in history hands over the keys. Following Warren Buffett’s retirement as chief executive officer on Dec. 31, his successor, Greg Abel, inherited oversight of a massive $358 billion investment portfolio. Operating under CEO Greg Abel, the Omaha-based conglomerate moved swiftly into uncharted territory during the first half of the year, dismantling old positions and charting a distinct technological course.
Ending a 14-Quarter Selling Streak With Billions in Equities
For fourteen consecutive quarters, Berkshire Hathaway operated as a net seller of stocks, a cautious posture that began under Buffett in late 2022. Abel shattered that pattern during the second quarter. According to the consolidated cash flow statement released by the company, $23.47 billion in equity securities were purchased compared to just $3.69 billion in sales.
This roughly $19.8 billion in net purchases signals an aggressive pivot toward active deployment. A closer look at the cost-basis breakout across Berkshire’s operating segments reveals where that capital flowed. Financials and consumer products saw modest shifts or outright trimming, but the commercial, industrial, and other sector jumped from $61.063 billion in the first quarter to $82.142 billion in the second quarter. Tech-driven acquisitions fit squarely within this heavily weighted “other” category.
Alphabet Rises to Become Berkshire’s Third-Largest Holding
The centerpiece of Abel’s buying campaign is Google parent Alphabet. Abel oversaw the purchase of 24,541,369 Class A shares and 23,603,218 Class C shares, bolstered by a June 1-announced private placement with Alphabet valued at $10 billion split evenly across both share classes.
With a combined market value nearing $36.6 billion, Alphabet leapfrogged both Bank of America and Coca-Cola to claim the spot as Berkshire Hathaway’s third-largest equity holding. The investment reflects a traditional Buffett-style appreciation for economic moats paired with a modern bet on infrastructure. Alphabet maintains a virtual monopoly on internet search, capturing over 91% of global search engine traffic in July, alongside ownership of YouTube, the second-most-visited social site globally.
Artificial Intelligence Ambitions Drive Cloud Growth
Beyond search dominance, Abel’s interest appears anchored in Alphabet’s artificial intelligence capabilities. Integrating generative AI and large language models directly into Google Cloud has accelerated revenue growth for the world’s third-largest cloud infrastructure service platform.
For Abel, Alphabet occupies a strategic position remarkably similar to the role Apple played under his predecessor.
Steadily Ringing the Register on Bank of America
While Abel builds a massive position in tech, he continues a systematic exit from one of Berkshire’s legacy financial bets. Berkshire sold 30,230,000 shares of Bank of America during the second quarter, marking the eighth consecutive quarter that Bank of America stock has been sold by Berkshire leadership.
The total position is now down by 53%, representing a reduction of nearly 549.5 million shares. Profit-taking serves as an obvious driver, given that BofA shares trade at a 64% premium to book value compared to the deep 62% discount Buffett secured when he bought preferred stock in August 2011. Furthermore, BofA remains highly sensitive to interest rates, suffering net interest income compression during the Federal Reserve’s six rate cuts executed between September 2024 and December 2025.
Capital Allocation Shifts Under New Leadership
Abel’s first six months at the helm demonstrate a willingness to reshape the conglomerate’s portfolio at a speed rarely seen during the final years of the Buffett era. By channeling tens of billions of dollars into commercial and technological giants while methodically trimming banking stalwarts, the new leadership team is signaling that Berkshire’s massive cash hoard is ready to be put to work wherever sustainable advantages emerge.
