Berkshire Hathaway Boosts Alphabet, Exits Amazon Under New CEO Abel

Greg Abel's first quarterly portfolio decisions as chief executive of Berkshire Hathaway reveal a clear strategic pivot. In the first quarter of 2026, Berkshire increased its Alphabet stake by a material amount while liquidating its entire Amazon position. This is significant because it shows that the new CEO is not simply continuing Warren Buffett's legacy portfolio; he is actively reshaping it in real time.

Alphabet, which owns Google Search, YouTube, and Google Cloud, is a play on both dominant legacy advertising franchises and emerging AI infrastructure. The Google Cloud division is growing rapidly as enterprises migrate workloads and build AI applications. By contrast, Amazon represents a more mature, capital-intensive business facing margin pressure from competition and the need to invest heavily in AI and cloud infrastructure. Abel's move to favor Alphabet over Amazon suggests he believes the former has better risk-adjusted returns in a higher-rate environment.

The timing is notable. Berkshire sold Chevron shares for $8 billion in the same quarter as oil prices rose, locking in gains. This suggests Abel is tactically rotating out of energy at the wrong time (oil is rallying now due to Iran supply concerns), unless he believes the spike is temporary. The broader message is that Abel is active, not passive, in portfolio management and willing to make bold calls.

For equity markets, the decision to reduce Amazon exposure is a minor headwind given Berkshire's massive size relative to individual names. However, the endorsement of Alphabet aligns with broader mega-cap tech narratives and signals confidence in the AI cloud buildout. The moves do not dramatically reshape Berkshire's overall positioning, but they show that the new regime is engaged and looking forward.