Berkshire Exits Amazon Position, Boosts Alphabet Under New CEO Greg Abel

Greg Abel's first quarter as CEO of Berkshire Hathaway has been marked by notable portfolio rebalancing that reflects shifting views on mega-cap tech valuations and energy exposure. Berkshire exited its Amazon position entirely, a move that surprised markets given Warren Buffett's long-standing respect for Jeff Bezos and Amazon's market dominance. Simultaneously, Abel boosted Berkshire's Alphabet stake, signaling greater conviction in Google's cash generation, AI moatA sustainable competitive advantage that protects long-term returns on capital., and advertising resilience relative to Amazon's elevated valuation and lower return on invested capital.

The Chevron sale generated approximately $8 billion in proceeds as the oil major's stock reached record highs amid the Iran-driven energy supply shock. This timing suggests Berkshire viewed the surge as a profit-taking opportunity rather than a sign of structural energy demand. The move also hints at skepticism around sustained crude price levels, with Berkshire perhaps betting that the geopolitical premium will eventually compress once supply disruptions ease or demand growth slows.

The Amazon exit is the most symbolically significant move. Amazon has long been viewed as a Buffett favorite due to its customer obsession, technological prowess, and returns profile. The exit suggests Abel and Berkshire now view the stock's valuation as stretched relative to near-term earnings visibility. Amazon's AWS business has faced competitive pressures from Azure and Google Cloud, and the broader retail and advertising segments face macro headwinds from consumer spending slowdown risks.

Alphabet's rally, by contrast, has been more measured despite strong AI capability signals from Gemini and Google Cloud growth. By increasing exposure, Abel appears to be betting on sustained search dominance, advertising pricing power even amid economic slowdown, and successful AI monetization across services. The Alphabet increase also tilts Berkshire toward less cyclical mega-cap tech exposure compared to Amazon's sensitive retail and logistics operations.