Berkshire Hathaway (BRK.A) Greg Abel Boosts AI Stock Bet

Alphabet Inc. Class A shares (NASDAQ:GOOGL) traded at 367.03 dollars on July 8, 2026, up a modest 0.08% on the day, as investors continued to digest Berkshire Hathaway's decision to make the Google parent one of its five largest equity holdings under new chief executive Greg Abel.

Abel's Reshuffle Puts Alphabet at the Center

Abel took the reins at Berkshire on January 1, and his first quarter as chief executive brought the most sweeping portfolio overhaul in years. He exited 16 positions entirely, cutting the number of holdings from 42 to 29, according to Berkshire's Q1 2026 13F HR filing submitted to the SEC on May 15, 2026. Rather than spread fresh capital broadly, Abel funneled much of it into Alphabet, more than tripling the Class A stake and opening a new Class C position, for a combined holding near 58 million shares worth roughly 17 billion dollars by the end of March.

The commitment deepened on June 1, when Alphabet unveiled an 80 billion dollar equity raise to finance artificial intelligence infrastructure. Berkshire acted as anchor investor with a 10 billion dollar private placement, split evenly between Class A shares at 351.81 dollars and Class C shares at 348.20 dollars, both priced at roughly a 6.5% discount to that day's closing level. Combined with earlier open market buying, Berkshire's total Alphabet exposure now tops 29 billion dollars, placing it alongside Apple, American Express, Coca-Cola and Bank of America among the conglomerate's top five positions, and pushing Chevron out of that group.

Valuation, Momentum and Yield at Alphabet

Alphabet's current price of 367.03 dollars sits well below its 52 week high of 408.61 dollars but comfortably above the 330.20 dollar low, placing shares roughly in the middle third of that range. The stock carries a market capitalization of 4.47 trillion dollars and trades at a price to earnings ratio of 33.64, with earnings per share supporting that multiple. A dividend yield of 0.24% offers little income cushion, underscoring that the investment case rests almost entirely on growth and capital appreciation rather than payout.

The relative strength index reads 54.45, a neutral figure that signals neither overbought exuberance nor oversold pressure. That momentum profile matches a stock digesting a large institutional endorsement without a corresponding price spike, since the day's move was a scant 0.08%.

The bull case centers on Berkshire's conviction: an anchor investment of this scale, priced at a discount to market, suggests confidence that Alphabet's AI infrastructure spending will translate into durable earnings growth, justifying a P/E above 33. The bear case points to concentration risk. Berkshire now has an outsized bet on a single technology name at a valuation that leaves little room for execution missteps, and the thin 0.24% yield means shareholders are wagering on continued multiple expansion rather than income.

Selling Spree Ran Alongside the Buildup

Abel's Alphabet accumulation did not happen in isolation. Berkshire fully exited Domino's, Amazon, Visa, Mastercard, UnitedHealth Group and eleven other positions during the same quarter. Several of those exits stem from the departure of portfolio manager Todd Combs, who left for JPMorgan; Abel told the Wall Street Journal in April that he unwound the positions Combs had managed. The Domino's exit is notable because Buffett built that 3.35 million share stake over six consecutive quarters with no earlier hint it was a short term holding. Overall, Berkshire was a net seller of about 8 billion dollars in equities for the quarter, buying roughly 16 billion dollars in stock while selling approximately 24 billion dollars.