Berkshire Hathaway triples Alphabet stake in Q1 2026 as other billionaires sell
The accumulation, primarily in class A voting shares, brings Alphabet’s weight in the roughly $332 billion portfolio to approximately 6.7%, defying recent selling pressure from prominent hedge fund managers.
Berkshire Hathaway has more than tripled its position in Alphabet during the first quarter of 2026, elevating the search and technology giant to become the fifth-largest holding in its portfolio. The move, led by incoming CEO Greg Abel, represents a significant shift in capital allocation for the conglomerate, which is valued at approximately $332 billion. The increased exposure now accounts for roughly 6.7 per cent of the portfolio, with the accumulation occurring primarily through class A voting shares.
This strategic accumulation marks Abel’s first full quarter overseeing investment activity since taking on his leadership role. The decision to expand exposure to Alphabet stands in stark contrast to actions taken by other prominent investors during the same period. Billionaire hedge fund managers Bill Ackman, who runs Pershing Square Capital Management, and Stanley Druckenmiller, of the Duquesne Family Office, both reduced or eliminated their stakes in the company.
Ackman clarified that the sale was not a bearish bet on Alphabet’s prospects but rather a capital rotation into Microsoft due to finite capital constraints and Alphabet’s strong recent performance. The divergence in strategy highlights differing institutional perspectives amidst Alphabet’s robust stock performance, which has risen nearly 122 per cent over the past year. While Ackman cited valuation and opportunity cost, Abel appears to be positioning for a longer-term hold, consistent with Berkshire’s historical investment philosophy.
Alphabet has raised its capital expenditure guidance for the current year to between $180 billion and $190 billion, a move that significantly impacts free cash flow. Wall Street analysts project Alphabet’s free cash flow for the current year to be approximately $26 billion, a substantial decrease from the more than $73 billion generated in the previous year. Despite this reduction, the company maintains an estimated 85 per cent to 90 per cent market share in the traditional internet search market, bolstered by its large language models and AI capabilities.
The investment comes against a backdrop of legal challenges, including a federal judge’s agreement with the U.S. Department of Justice’s claim that Alphabet operates as a monopoly in search and advertising. However, the company’s dominant market position and its other fast-growing businesses, such as YouTube and Google Cloud, continue to present strong competitive moats. The accumulation suggests that Berkshire views these entrenched advantages as sufficient to offset the heavy capital spending and regulatory headwinds.
