Warren Buffett ends 14-quarter stock sell-off with $23.5B — Alphabet got $10B
Berkshire Hathaway became a net buyer of stocks for the first time in three and a half years, ending a 14-quarter selling streak that had defined Warren Buffett’s post-pandemic posture. The $23.5 billion deployed across the second quarter represents the largest quarterly equity push since the streak began — and the single biggest allocation went to Alphabet, acquired through a private placement at terms unavailable to public investors.
For 14 consecutive quarters, Berkshire had steadily exited positions while its cash reserve climbed to $397.4 billion by end of March. Buffett’s extended patience had become one of the market’s most watched signals — if the world’s most experienced capital allocator was on the sidelines, what did that say about valuations? The $23.5 billion second-quarter haul reframes that question. Cash has since slipped to $365.5 billion, still an enormous buffer, but the direction has shifted.
The Alphabet deal’s structure is as significant as its size. Berkshire acquired $10 billion through a private placement — direct negotiation with the company rather than open-market orders. Class A shares were priced at $351.81 against the public rate of $355.1982 on the same date; Class C shares cleared at $348.20 versus $351.8018. The total discount across the placement was roughly $100 million. Buffett’s comment on the purchase: “I initiated it.”
Berkshire also acquired approximately $6.8 billion of Taylor Morrison, a US homebuilder, at $72.50 per share — a signal that Buffett sees durable demand for new housing outweighing elevated borrowing costs. Greg Abel, Berkshire’s designated successor, praised the deal.
One quarter does not overturn 14. Berkshire still holds enough cash to buy most European banks outright. Share buybacks also jumped to $4.53 billion from $235 million in Q1, suggesting some of the quarter’s capital activity was self-directed. Operating earnings rose 16% to $12.98 billion, but the company’s history rewards patience, not momentum-chasing. Whether the Alphabet bet reflects a durable thesis or an opportunistic entry at scale is a question the next several quarters will answer.
For public investors, the deal’s structure highlights an enduring asymmetry. Berkshire negotiated a private price before most Alphabet shareholders knew a transaction was underway; the trade became visible only weeks later, in the quarterly 13-F filing.
Berkshire’s next 13-F filing, covering positions through the end of September, is due in mid-November.