Berkshire Returns to Net Equity Buying; Google Becomes Third-Largest Position

What happened

After a period of net selling in Q4 2025, Berkshire Hathaway under CEO Greg Abel has returned to being a net buyer of equities, according to recent reports. Notably, Alphabet (Google) has risen to become Berkshire's third-largest equity holding, and the company is increasingly viewed as an AI leader through its cloud and device partnerships. This shift occurs amid Berkshire's massive cash position ($373.3B) and the initiation of share repurchases in March 2026, which signaled a more active capital allocation stance under Abel. The move to net buying suggests a renewed confidence in equity markets and a willingness to deploy cash, potentially addressing concerns about the cash hoard. However, the master report cautioned that sustainability of buybacks and capital deployment remains uncertain, and insurance pricing pressures could temper earnings.

Implication

Investors should monitor whether Berkshire's net buying persists beyond a single quarter, as it would indicate a durable change in capital allocation under Abel. The elevation of Google to a top-three holding suggests a conviction in AI-driven growth, which could enhance long-term portfolio returns. However, the massive cash balance still looms, and meaningful buybacks or acquisitions are needed to move per-share value materially. The Q1 2026 10-Q will be pivotal in quantifying repurchase activity and confirming whether the capital allocation shift is sustainable. Insurance pricing pressures, particularly in auto and reinsurance, remain a risk to earnings and could offset gains from equity deployment.

Thesis delta

Berkshire's shift to net buying and the rise of Google to third-largest holding suggests a more active equity deployment under Abel. This reduces the risk of permanent cash drag and supports a more constructive view on per-share value growth. However, confirmation of the scale of buybacks in Q1 2026 remains a key catalyst.