Berkshire Hathaway bought $10 billion of Alphabet shares directly from the company in June, alongside open-market purchases that lifted its stake by $17 billion to about $36.6 billion in the second quarter. Alphabet became Berkshire’s third-largest holding.
Unlike its Apple investment, Berkshire bought both Class A and Class C Alphabet shares directly in a private placement, at a discount to their then-trading prices; Berkshire never made a direct equity investment in Apple. The article says the deal also helped bolster public sentiment toward Alphabet as investors grew concerned about its large AI infrastructure spending.
Buffett said in July that he had initiated the investment, while Abel was the decision-maker on subsequent purchases. The article suggests Abel’s further buying may have reflected AI’s effects on Berkshire’s operating businesses, which reportedly strengthened his confidence that Alphabet’s AI infrastructure spending would pay off.
