Berkshire Hathaway boosts Alphabet stake, exits Amazon position under new CEO Greg Abel

Greg Abel's first quarter as CEO of Berkshire Hathaway marked a notable inflection in the conglomerate's equity strategy. Form 13F filings revealed that Berkshire increased its Alphabet (Google) position while simultaneously exiting its long-standing Amazon stake entirely. The moves, executed over the first three months of 2026, suggest Abel is reorientating the portfolio toward different growth narratives than his predecessor favored. Alphabet's exposure to AI services and cloud advertising aligns with secular tech tailwinds, whereas the Amazon exit signals reduced conviction in e-commerce growth or returns on capital.

The timing matters. Both Alphabet and Amazon have faced scrutiny on valuations and return-on-invested-capital, but recent earnings have shown Alphabet's advertising business benefiting from AI-driven improvements in targeting and conversion. Amazon's core retail business, by contrast, has faced margin pressure from competitive intensity and freight costs. Abel's rotation may reflect a view that Alphabet's cloud and AI exposure, particularly through Google DeepMind and Gemini, offers superior risk-reward than Amazon's capital-intensive retail operations and competitive moatA sustainable competitive advantage that protects long-term returns on capital. erosion.

Berkshire's moves carryIncome earned from holding a position over time. signaling weight in markets. The conglomerate manages roughly $1 trillion in assets, and its portfolio adjustments are closely monitored as bellwethers of sophisticated capital allocation. The Alphabet boost was paired with strong confidence in core Berkshire holdings like insurance and energy, but the Amazon exit was notable given Warren Buffett's long history of praise for founder Jeff Bezos. Some observers attributed the exit to Abel's independent view-forming, while others suggested it may reflect concerns about Amazon's ability to sustain premium valuations amid rising interest rates and energy cost inflationThe rate at which prices rise across an economy..

The move also occurs as Pershing Square (Bill Ackman) disclosed new positions in Alphabet and continued Microsoft accumulation in its Q1 13F, suggesting institutional mega-cap rotation is broadening beyond tech into specific names perceived as AI-beneficiaries with durable competitive advantages. Amazon bulls counter that the company's cloud business (AWS) and emerging advertising offerings remain underpenetrated and that the exit merely reflects Berkshire's defensive posture in a rate-rising environment, not fundamental weakness in the business.