Title: New Berkshire Leadership Executes $10 Billion Alphabet Investment

Under the guidance of new CEO Greg Abel, Berkshire Hathaway appears to be actively deploying its massive cash reserves, marking a shift from the cautious stance of its late chairman. The conglomerate announced a $10 billion purchase of Alphabet shares via private placement on Monday, a move that follows closely on the heels of an $8.5 billion agreement to acquire homebuilder Taylor Morrison.

Berkshire Hathaway, the holding company behind brands such as Geico, Dairy Queen, and Precision Castparts, is set to acquire $5 billion in Alphabet Class A shares at approximately $352 per share, alongside an equal $5 billion in Class C shares at roughly $348 per share. These entry points represent a discount of approximately 6% compared to the market price, as both share classes traded above $370 on Monday.

This latest investment significantly expands Berkshire’s existing position in the technology giant, which also noted on Monday that it intends to raise an additional $70 billion from external sources. Berkshire initially purchased nearly 18 million shares of Alphabet in the third quarter of last year. By the first quarter of this year, it had more than tripled its holdings to nearly 58 million shares, valuing the stake at approximately $17 billion as of March 31. If the company has not reduced this position since then, and assuming the completion of the new $10 billion deal, Berkshire’s total investment in the Big Tech firm will exceed $32 billion, establishing it as one of the most significant assets within its portfolio.

The decision to increase spending comes after a period where former CEO Warren Buffett, who stepped down from the CEO role at the end of last year but remains chairman, struggled to find suitable avenues for deployment. Buffett, widely recognized for his value-investing approach, faced challenges in a bullish stock market environment characterized by intense acquisition competition and a high Berkshire share price that made repurchases less attractive. Consequently, Berkshire’s holdings of cash, Treasury bills, and other liquid assets nearly tripled over the past three years, swelling from roughly $130 billion at the close of 2022 to a record $380 billion by the end of March.

Despite long-standing pressure from some investors to utilize its capital, Berkshire has maintained its strategy. Prominent shareholders, including fund manager Tom Russo, have commended Buffett’s fiscal discipline, arguing that the substantial reserve of dry powder will prove essential during future economic downturns.

Source: Yahoo News Generated at: 2026-06-02 14:38:03 UTC