Berkshire Rebalances Portfolio: Is It Embracing the Tech Era?

Berkshire Hathaway BRK.B is once again reshaping its equity portfolio, adding shares of Alphabet, Delta Air Lines and Lennar while reducing positions in Kroger, Bank of America, Capital One Financial and several other companies, according to its 13F filing. Berkshire purchased approximately $23.5 billion in equities and sold about $3.7 billion per media reports.

The conglomerate increased its Alphabet stake by roughly 48.1 million shares, bringing its total to 106 million shares valued at $37.8 billion at the end of the second quarter. Alphabet is now Berkshire’s third-largest U.S. equity holding, behind Apple and American Express.

Alphabet remains a leader in technological innovation. Google dominates online search, while the company continues to expand in cloud computing and autonomous vehicles. Berkshire’s investment suggests it does not want to miss the growth potential of this Magnificent Seven company.

Berkshire also raised its Delta Air Lines holding from 39.8 million to 47.3 million shares. It further strengthened its housing exposure by investing $273 million in Lennar after previously purchasing Taylor Morrison Home shares.

Meanwhile, Berkshire reduced its stakes in Kroger, Capital One, Nucor and Bank of America. Holdings in Apple, American Express and Coca-Cola remained unchanged.

Berkshire has been rebalancing its investment portfolio over time to have income-generating and geographically diverse holdings. It appears that the company is intentionally reducing concentration risks and underscores its intention to ensure uninterrupted cash flow generation, which, in turn, can be deployed in share buybacks as well as opportunistic investments.

What About BRK.B’s Competitors?

Progressive Corporation’s PGR inorganic growth strategy focuses on building scale, technology and distribution while reinforcing its insurance portfolio. Progressive pursues disciplined, selective deals that deliver strategic value and complement its core strengths. Through targeted acquisitions, Progressive enhances efficiency and customer reach, ensuring long-term competitiveness in a dynamic insurance landscape.

Travelers Companies’ TRV inorganic growth strategy emphasizes reinforcing core insurance strengths while expanding into complementary markets. Travelers seeks disciplined acquisitions that enhance underwriting, technology and distribution capabilities. With a focus on sustainable shareholder value, Travelers carefully evaluates opportunities that bolster its competitive edge while maintaining a conservative balance sheet.

BRK.B’s Price Performance

Shares of BRK.B have lost 0.6% year to date, underperforming the industry.

Image Source: Zacks Investment Research

BRK.B’s Expensive Valuation

BRK.B trades at a price-to-book value ratio of 1.43, higher the industry average of 1.41.

Image Source: Zacks Investment Research

Estimates Movement for BRK.B

The Zacks Consensus Estimate for BRK.B’s third-quarter 2026 EPS has moved up over the past 30 days but that of fourth-quarter moved south in the same time frame. The consensus estimate for full-year 2026 and 2027 EPS has moved north in the last 30 days.
 

Image Source: Zacks Investment Research

The consensus estimates for BRK.B’s 2026 and 2027 revenues and earnings indicate year-over-year increases.

BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research