Berkshire triples Alphabet stake and buys Delta stock while dumping Amazon

By the end of March, Berkshire owned nearly 58 million Alphabet shares worth almost $17 billion.

Berkshire Hathaway's stake in Alphabet has tripled, with the conglomerate owning nearly 58 million shares worth almost $17 billion by the end of March. The company also purchased Delta Air Lines stock, while dumping shares of Visa, Mastercard, Domino's Pizza, Amazon, and United Healthcare. Todd Combs, one of the two investment managers hired by Warren Buffett, departed late last year, leading to a shift in Berkshire's investment strategy. Berkshire's portfolio changes were disclosed in a recent regulatory filing.

The shift in Berkshire's portfolio may impact the price of Amazon shares, which could affect the cost of online shopping for consumers. As one of the largest investors in the market, Berkshire's decisions can influence stock prices and ultimately affect the prices consumers pay for goods and services. Amazon's stock price may decline due to the loss of a major investor, potentially impacting the company's ability to invest in new technologies and services. This could have a ripple effect on the broader e-commerce industry.

Warren Buffett's investment strategy has historically focused on long-term value investing, and the recent changes to Berkshire's portfolio reflect this approach. Buffett has been critical of the tech industry in the past, but the significant investment in Alphabet suggests a shift in his perspective. Insiders note that Buffett's investment decisions are often driven by his assessment of a company's underlying business fundamentals, rather than short-term market trends. Berkshire's investment history reveals a pattern of targeting companies with strong financials and competitive advantages.

Berkshire Hathaway's next quarterly earnings report is scheduled for release in August, which will provide further insight into the company's investment strategy and portfolio performance. Investors will be watching for any additional changes to Berkshire's portfolio, particularly with regard to its tech holdings. A surprising detail is that Berkshire's investment in Delta Air Lines marks a rare foray into the airline industry, which has historically been challenging for investors due to high operating costs and competitive pressures.