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Berkshire Hathaway revealed a $4.3 billion stake in Google parent Alphabet and further reduced its stake in Apple, detailing its equity portfolio for the last time before Warren Buffett ends his 60-year run as chief executive.
In a filing with the Securities and Exchange Commission, Berkshire said it owned 17.85 million Alphabet shares as of Sept. 30.
Berkshire lowered its Apple stake to 238.2 million shares from 280 million in the third quarter, and has now sold nearly three-quarters of the 905 million shares it once held. Apple remained Berkshire’s largest stock holding, at $60.7 billion.
The filing listed Berkshire’s US-listed stock holdings as of Sept. 30, which comprised most of the conglomerate’s $283.2 billion equity portfolio.
Berkshire’s investment in Alphabet, which became its 10h-largest US stock holding, is surprising given Buffett’s usual value-investing style and aversion to technology companies.
Buffett considers Apple, which makes the iPhone, more of a consumer products company.
It is not clear whether Buffett, his portfolio managers Todd Combs and Ted Weschler, or CEO-designate Greg Abel make specific purchases, though Buffett normally makes larger investments.
At Berkshire’s annual shareholder meeting in 2019, Buffett and late Vice Chairman Charlie Munger lamented not investing in Google. Buffett said its advertising model bore similarities to what was working for Berkshire’s Geico car insurance unit.
“We screwed up,” Munger said.
“He’s saying we blew it,” Buffett responded.
Alphabet shares rose 1.7% in after-hours trading. Stock prices often rise when Berkshire reveals new stakes, reflecting what investors view as Buffett’s seal of approval.
Berkshire sells more Bank of America
Berkshire bought $6.4 billion of stocks and sold $12.5 billion between July and September, the 13th straight quarter it was a net seller of stocks, while cash grew to a record $381.7 billion.
Apple may have accounted for three-quarters or more of the sales.
Berkshire also sold 6% of its Bank of America shares, extending selling that began in last year’s third quarter.
The bank is still Berkshire’s third-largest stock holding. Berkshire also shed its stake in homebuilder DR Horton, while buying more stock in several companies including the insurer Chubb and Domino’s Pizza.
Buffett has let cash swell as he prepares to turn his $1.1 trillion conglomerate over to Abel, now a vice chairman, on January 1.
Investors and analysts have said Omaha, Neb,-based Berkshire has been cautious about valuations, having gone more than a year since buying back its own stock and nearly a decade without a giant acquisition.
Berkshire owns close to 200 businesses. These include the BNSF railroad, many energy, industrial and manufacturing companies, and retail brands such as Dairy Queen, Fruit of the Loom and See’s Candies.