Berkshire Hathaway adds ₹38,135 cr stake in Google’s parent Alphabet, reduces Apple shares
In a significant development, Warren Buffett-led Berkshire Hathaway has announced that it has acquired a substantial stake in Google’s parent company, Alphabet. As per the latest SEC filings, Berkshire Hathaway has bought 17.85 million shares of Alphabet, valued at $4.3 billion (approximately ₹38,135 crore). This move is seen as a strategic investment by the conglomerate, ahead of the billionaire investor’s eventual exit.
The investment in Alphabet is a notable addition to Berkshire Hathaway’s portfolio, which has historically been dominated by investments in the finance and consumer goods sectors. The acquisition of a significant stake in Alphabet reflects the company’s growing interest in the technology sector, particularly in companies with strong growth potential and a dominant market position.
In contrast, Berkshire Hathaway has reduced its stake in Apple, one of its largest holdings. As per the latest filings, the company now holds 238.2 million shares of Apple, down from its previous holdings. Despite this reduction, Apple remains the company’s largest holding, valued at $60.7 billion (approximately ₹5.38 lakh crore).
The reduction in Apple stake is seen as a strategic move by Berkshire Hathaway to diversify its portfolio and reduce its dependence on a single stock. Apple has been a significant contributor to Berkshire Hathaway’s portfolio returns in recent years, and the company may be looking to balance its exposure to the tech giant.
The investment in Alphabet, on the other hand, is a bet on the company’s growth potential and its dominant position in the technology sector. Alphabet’s core business, Google, is a leader in the search engine market and has a significant presence in the digital advertising space. The company’s other businesses, including YouTube, Google Cloud, and Waymo, also have significant growth potential and are expected to contribute to the company’s future growth.
Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has been known for his value investing approach and his ability to identify companies with strong growth potential. The investment in Alphabet is seen as a reflection of his confidence in the company’s future prospects and its ability to generate long-term returns for shareholders.
The move is also seen as a sign of Berkshire Hathaway’s willingness to adapt to changing market conditions and to invest in companies that are positioned for growth in the digital economy. As the company looks to the future, it is likely that we will see more investments in the technology sector, particularly in companies with strong growth potential and a dominant market position.
In conclusion, the acquisition of a significant stake in Alphabet by Berkshire Hathaway is a significant development that reflects the company’s growing interest in the technology sector. The reduction in Apple stake, on the other hand, is a strategic move to diversify the portfolio and reduce dependence on a single stock. As the company looks to the future, it is likely that we will see more investments in the technology sector, particularly in companies with strong growth potential and a dominant market position.
The move is also a testament to Warren Buffett’s ability to identify companies with strong growth potential and his willingness to adapt to changing market conditions. As one of the most successful investors in history, Buffett’s moves are closely watched by the investment community, and this latest development is likely to be seen as a positive sign for the technology sector.
Overall, the investment in Alphabet by Berkshire Hathaway is a significant development that reflects the company’s growing interest in the technology sector and its willingness to adapt to changing market conditions. As the company looks to the future, it is likely that we will see more investments in the technology sector, particularly in companies with strong growth potential and a dominant market position.
