Berkshire Hathaway’s latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC) for the second quarter revealed a major strategic reallocation. The conglomerate added roughly $17 billion worth of Alphabet Inc. shares, a move that establishes the tech giant as Berkshire’s third-largest equity holding, overtaking Coca-Cola and sitting behind only Apple and American Express.

Alphabet Expansion and Selective Sector Additions

According to the official filing, Berkshire now holds nearly 106 million Class A and Class C shares of Alphabet, valued at approximately $36.6 billion. Of the 48.1 million shares added during the quarter, roughly 60% were acquired directly from Alphabet as part of a $10 billion private placement announced in early June, while the remaining portion—valued at around $7 billion—was purchased on the open market.

Beyond Alphabet, Berkshire executed additional portfolio adjustments. The company expanded its position in Delta Air Lines by 44%, deploying an additional $1.6 billion to bring its total holding to 57.3 million shares worth approximately $5.1 billion. This marks a gradual return to the airline sector after Berkshire exited its airline holdings at a loss during the onset of the pandemic in early 2020. Additionally, the conglomerate recorded modest increases in retailer Macy’s and homebuilder Lennar.

Continued Trimming of Financial Holdings

In contrast to its purchases in technology and aviation, Berkshire continued its systematic reduction of banking and financial services exposure. During the quarter, the company trimmed its stake in Ally Financial by 7% and reduced its position in Capital One by 58%.

The most significant reduction occurred in Bank of America. Although Berkshire reduced its position by a modest 5.9%, the sheer scale of the holding resulted in a dollar reduction of approximately $1.7 billion—the largest single-quarter dollar exit for the firm. This step follows eight consecutive quarters of partial net selling in the bank’s shares.

Michael Burry’s Critique and Market Reaction

The pace of transactions and capital deployment generated widespread discussion among Wall Street investors. Investor Michael Burry, known for his subprime mortgage trade in 2008, voiced criticism regarding the firm’s capital allocation under CEO Greg Abel. Burry argued that the rapid deployment of cash suggests a departure from Warren Buffett’s disciplined, patient approach of waiting for exceptionally priced opportunities (“waiting for a fat pitch”).

Despite Berkshire maintaining a cash pile of approximately $359.2 billion (excluding railroad cash and notes payable), and resuming share buybacks with $4.5 billion repurchased during the quarter, both classes of Berkshire stock declined by over 3% in the week following the release.

Looking Ahead: Capital Allocation in the Post-Buffett Era

The quarterly adjustments in Berkshire Hathaway’s portfolio reflect an effort to balance significant liquidity with modernized growth drivers in a complex macroeconomic environment. The allocation of tens of billions toward a dominant technology enterprise like Alphabet, paired with a persistent exit from traditional banking names, highlights the conglomerate’s pivot toward digital cash-flow generators. Market participants will continue to scrutinize the leadership team’s capital deployment speed and its ability to compound long-term shareholder value.