Greg Abel has remade Berkshire Hathaway's $358 billion equity portfolio in his first two quarters as chief executive, liquidating 16 positions including Amazon while compounding the Alphabet holding more than six-fold to $36.37 billion in market value.
The Amazon exit
The March-ended quarter saw Abel send 16 names to the chopping block. Amazon was the most conspicuous, a position initiated in the first quarter of 2019 that had appreciated 150% to 200% by the time of sale. AWS revenue hit $42.2 billion in the June quarter, growing 37% year-over-year, its fastest pace in 18 quarters. The source attributes the disposal to profit-taking and the December departure of investment manager Todd Combs for JPMorgan Chase, noting the culled positions were predominantly non-core holdings Combs oversaw alongside Ted Weschler.
The Alphabet accumulation
Between December 31 and September 25, Berkshire's Alphabet stake grew from $5.59 billion to $36.37 billion, a 550% increase in market value. The filing window spans Abel's first nine months at the helm. The source does not disclose how much of the increase reflects new purchases versus price appreciation, nor the average cost basis. No consideration type, premium to undisturbed price, or break condition applies to open-market accumulation.
The cloud and AI thesis
Abel's stated rationale mirrors Buffett's Apple thesis: a sustainable moat. Google held a 91%-plus share of global internet search in August; YouTube ranks as the second-most-visited social platform. Alphabet's June quarter showed revenue up 24% year-over-year to $119.8 billion, operating margin expanding 2 percentage points to 34%, and $98 billion in net gains from equity investments. Google Cloud revenue surged 82% to $24.8 billion with operating margin jumping 15 points to 36%. YouTube advertising rose 13% to $11.1 billion.
What the filings omit
The 13F series will reveal the share count but not the timing or price of each tranche. The source cites a "mountain of cash" and "jaw-dropping returns" from private holdings including Space Exploration Technologies, yet provides no figures for Alphabet's cash position or the SpaceX mark. Until the next quarterly report, the pace of buying and the split between GOOGL and GOOG share classes remain undisclosed.