In the second quarter, Berkshire Hathaway acquired nearly 106 million shares of Alphabet, valued at approximately $36.6 billion, positioning it just ahead of Coca-Cola in the portfolio rankings. This purchase included a $10 billion private placement directly from Alphabet, indicating a strong commitment to the tech giant.
Additionally, Berkshire increased its stake in Delta Air Lines by 44%, reflecting a renewed interest in the airline sector despite past losses. However, the company has been divesting from financial stocks, reducing its stakes in Ally Financial, Capital One, and Bank of America, which has raised eyebrows among investors.
Notably, Michael Burry expressed concerns about the company's cash management strategy under Abel, suggesting that the current approach lacks the patience historically exhibited by Warren Buffett. Despite these concerns, Berkshire's stock saw a decline of over 3% following the announcement of its Q2 activities, even with the initiation of significant buybacks for the first time in two years.
As of June 30, Berkshire's cash reserves stood at $365.5 billion, down from previous quarters, prompting discussions about the effectiveness of its investment strategy moving forward