Warren Buffett is stepping down as CEO of Berkshire Hathaway at the end of this year, marking a significant change for the company that has been its poster child for conglomerate holding companies. As he hands over the reins, Berkshire Hathaway is making some notable changes to its portfolio.
The company has reduced its stake in Apple by 21.4% and Bank of America by 9.6%, selling off around 238 million Apple shares and 568 million Bank of America shares. These sales were likely made to lock in profits at a favorable corporate tax rate, as Berkshire Hathaway aims to maintain its significant investments.
However, not all of the changes are for sale. Berkshire Hathaway has made a new investment in Alphabet, which marks a notable shift away from high-growth tech companies. The company now owns around 17.8 million shares of Alphabet, a move that may be driven by Alphabet’s strong performance and increasing presence in artificial intelligence.
Alphabet achieved its first-ever $100 billion quarter in the third quarter, generating nearly $24.5 billion in free cash flow. The company has a strong balance sheet, competitive moat in Google Search, and recently began paying a dividend. These factors may have contributed to Berkshire Hathaway’s decision to invest in Alphabet.
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Note: The article has been simplified to make it more accessible and engaging while maintaining the core information.
Source: https://www.nasdaq.com/articles/warren-buffett-dumping-apple-and-bank-america-shares-and-buying-red-hot-ai-stock-end-2025