Greg Abel Deployed $10 Billion Into Alphabet's Private Placement, Building a $38 Billion Stake That's Now Berkshire Hathaway's Third-Largest Holding. Is Alphabet Becoming Berkshire's New Apple?
Don't assume the conglomerate's Alphabet stake is "Apple 2.0"
Overview
Back in June, Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) upped the ante on its investment in Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), purchasing an additional $10 billion worth of shares directly from the company. This private-placement purchase, coupled with additional open-market stock buys, increased the conglomerate's position in the tech giant by $17 billion to around $36.6 billion during the second quarter.
Today, it's the third-largest position in Berkshire Hathaway's stock portfolio, and the rapid growth of that stake may lead retail investors to wonder: Is the Omaha-based holding company, until recently run by Warren Buffett, aiming for a repeat of its extremely successful investment in Apple (NASDAQ: AAPL), or is the "angle" here something else completely?
Image source: The Motley Fool
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Originally published at www.fool.com.