As Warren Buffett prepares to step down as CEO of Berkshire Hathaway at the end of next month, he indicated that he would take a more subdued public role, saying he will be “going quiet,” but only “sort of.” This announcement comes alongside his Thanksgiving letter, which appears poised to become a significant annual event for shareholders.
In a surprising twist, Berkshire Hathaway’s recent end-of-Q3 equity portfolio revealed a significant acquisition: the company acquired more than 17.8 million Class A shares of Alphabet, Google’s parent company, valued at approximately $4.9 billion. This purchase represents the largest addition to the portfolio in terms of dollar value during the third quarter, propelling Alphabet’s stock up by 3.5% in after-hours trading. Historically, Buffett has favored investments in companies with strong operational fundamentals rather than technology stocks, yet the decision reflects an evolving investment strategy as Berkshire moves forward.
While Buffett has traditionally avoided tech companies, stating he views Apple as more of a consumer products company, opinions have shifted. Buffett admitted in 2019 that he regretted not investing in Alphabet sooner, acknowledging that they understood the effectiveness of Google’s advertising but missed the opportunity to buy shares earlier when they were priced around $59. The current CEO-in-waiting, Greg Abel, along with portfolio managers Ted Weschler and Todd Combs, may have a hand in this unexpected purchase.
On the selling side, Apple and Bank of America saw reductions in their stakes, with Apple’s position cut by nearly 15%—a notable reduction of $10.6 billion—while its remaining shares total around $64.9 billion, still making it Berkshire’s largest equity holding. Meanwhile, Bank of America shares were reduced by 6.1%, equating to approximately $1.9 billion.
In his Thanksgiving letter, Buffett emphasized his enduring connection with shareholders and indicated that Abel would take on more responsibility starting next year. Although Buffett will continue to communicate with shareholders through his annual letters, he has begun transferring the reins of leadership. His recent letter highlighted his confidence in Abel’s management capabilities while also touching on personal reflections about aging and his philanthropic intentions, including plans to ramp up lifetime gifts to his children’s foundations.
Buffett’s engagement through his Thanksgiving message—and the overall evolution of Berkshire’s investment strategy—suggests a thoughtful transition period as the investment giant adapts to new leadership and market dynamics. This change not only reflects Buffett’s legacy but also sets a positive tone for Berkshire Hathaway’s future under Greg Abel’s stewardship, which many investors eagerly anticipate.