Berkshire More Than Tripled Its Alphabet Stake — Greg Abel's First Big AI Bet

Berkshire Hathaway's Q1 2026 13F filing is out. Amid a sweeping portfolio purge of 16 stocks and billions in trims, the one name Greg Abel loaded up on was Alphabet (GOOGL).

Berkshire ended the first quarter with a record $397.6 billion cash pile. The portfolio moves look defensive — recession fears, elevated rates, consumer fatigue. But one position broke the pattern entirely: Alphabet got more than tripled.

Spring cleaning — 16 positions eliminated

According to the 13F filing, Berkshire exited 16 positions entirely in Q1: UnitedHealth (UNH), Visa (V), Mastercard (MA), Domino's (DPZ), Diageo (DEO), and the remainder of its Amazon (AMZN) stake, among others.

Partial cuts tell the same story. Constellation Brands (STZ) was slashed 95%. Bank of America (BAC), Chevron (CVX), and Nucor (NUE) were trimmed. Consumer, financial, and energy names — cyclicals — bore the brunt.

• Full exits: UNH, V, MA, DPZ, DEO, AMZN (remainder)
• STZ cut by 95%
• BAC, CVX, NUE reduced
• Cash pile: $397.6B — a Berkshire record

One exception: Alphabet

Berkshire boosted its Alphabet Class A (GOOGL) holdings to 54.2 million shares, worth approximately $15.6 billion. It also purchased 3.6 million Class C shares (GOOG) worth around $1 billion. Combined, the $16.6 billion position became one of Berkshire's five largest holdings in a single quarter.

Alphabet is both defensive and growth-oriented at the same time — a rare combination. Even if the economy slows, Google's core advertising machine continues producing enormous cash flow.

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Three reasons Abel chose Alphabet

The logic behind loading up on Alphabet while trimming almost everything else isn't complicated.

• Cash generation: $64.4B in free cash flow over the last 12 months, $126.8B in cash and securities
• AI leadership: Gemini competes with Microsoft and OpenAI; Google Cloud revenue +63% YoY; cloud operating income tripled to $6.6B
• Shareholder returns: $7.7B in buybacks over the past year; dividend initiated at ~0.2% yield

The thesis: advertising holds even in downturns, while AI cloud becomes the next growth layer. Alphabet already funds the future with today's profits — the quality combination Berkshire values most.

Valuation: still the most reasonable AI name

Alphabet shares are up 25% year to date and 138% over the past year. Yet on a forward P/E basis, the stock remains arguably the cheapest among major AI plays.

• Alphabet (GOOGL): Forward P/E ~27x | 1-year return +138%
• Microsoft (MSFT): ~22x | -7%
• Nvidia (NVDA): ~20x | +67%
• Amazon (AMZN): ~26x | +29%

In an era when many companies are burning capital on AI with no profits to show, Alphabet is already generating returns while expanding. The buyback and dividend launch signal management's conviction in sustained cash generation.

Berkshire's message

This 13F tells a clear story. Abel is cautious on the economy — hence the record cash pile and the sweeping cuts to cyclical exposure. But if you're going to hold growth through uncertainty, own the companies already funding the future with today's profits. That's what Alphabet is. That's what Abel bought.

Regulatory risk, intensifying AI competition, and ad market sensitivity are all real. But Berkshire tripling its stake is a signal investors shouldn't ignore.