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Alphabet Up, Apple Down: Berkshire Hathaway Rebalances Portfolio?

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Key Takeaways

  • BRK.B bought about 17.85M Alphabet shares and cut its Apple stake to 238.2M shares.
  • The conglomerate is reducing concentration risk while exiting BYD and lifting Japanese holdings.
  • BRK.B's EPS estimates have slipped even as consensus sees revenue rising in 2025 and 2026.

Berkshire Hathaway Inc. (BRK.B - Free Report) is yet again rephasing its portfolio — bought shares in Alphabet and trimming stake at Apple. Per TheStreet, Berkshire has purchased around 17.85 million shares for about $4.34 billion as found in the 13F form. Berkshire also trimmed 41-42 million shares in Apple, and it now has only 238.2 million shares.

Alphabet is one of the most innovative companies in the modern technological age. Google has a monopoly with roughly 90% of the online search volume and market. It is gaining market share in cloud-computing, enjoys a dominant position in the autonomous vehicles market, enjoys a dominant position in the autonomous vehicles market. Alphabet is also known as the maker of smartwatches (Pixel Watch), laptops and tablets (Chromebooks), and smart home products (Google Nest). It seems the Oracle of Omaha does not want to miss out on this stock, which is also one of the Magnificent Seven stocks.

Berkshire has been rebalancing its investment portfolio over time to have an income-generating and geographically diverse holdings. This conglomerate has sold its stake in Chinese electric vehicle maker BYD.

Apart from this, Berkshire has lowered its stakes in Apple and Bank of America earlier. It appears that Berkshire is intentionally reducing concentration risk. On the other hand, Berkshire has been steadily increasing its stake in Japanese firms since initiating investment in July 2019. These strategic moves underscore Berkshire’s intention to ensure uninterrupted cash flow generation, which, in turn, can be deployed in share buybacks as well as opportunistic investments.

What About BRK.B’s Competitors?

Progressive Corporation’s (PGR - Free Report) inorganic growth strategy focuses on building scale, technology, and distribution while reinforcing its insurance portfolio. Progressive pursues disciplined, selective deals that deliver strategic value and complement its core strengths. Through targeted acquisitions, Progressive enhances efficiency and customer reach, ensuring long-term competitiveness in a dynamic insurance landscape.

Travelers Companies’ (TRV - Free Report) inorganic growth strategy emphasizes reinforcing core insurance strengths while expanding into complementary markets. Travelers seeks disciplined acquisitions that enhance underwriting, technology and distribution capabilities. With a focus on sustainable shareholder value, Travelers carefully evaluates opportunities that bolster its competitive edge while maintaining a conservative balance sheet.

BRK.B’s Price Performance

Shares of BRK.B have gained 11.1% year to date, outperforming the industry.

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BRK.B’s Expensive Valuation

BRK.B trades at a price-to-book value ratio of 1.55, above the industry average of 1.48. It carries a Value Score of D.

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Estimate Movement for BRK.B

The Zacks Consensus Estimate for BRK.B’s fourth-quarter 2025 EPS has moved 15.8% south over the past seven days, while that for first-quarter 2026 EPS has witnessed no movement in the same period. The consensus estimate for full-year 2025 and 2026 EPS has moved 0.3% and 3% south, respectively, over the past seven days.
 

Zacks Investment Research
Image Source: Zacks Investment Research

The consensus estimates for BRK.B’s 2025 and 2026 revenues indicate year-over-year increases. While the consensus estimate for BRK.B’s 2025 and 2026 EPS indicates a year-over-year decline.  

BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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The Travelers Companies, Inc. (TRV) - free report >>

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