Key Metrics
- Greg Abel deployed $23B into Alphabet, tripling Berkshire's stake to 54M shares.
- Berkshire fully exited Amazon, rotating from e-commerce to AI and digital advertising.
- BRK-B trades at 1.4x book value, below 5-year average of 1.6x, with 15% upside target.
- Abel's bold bet mirrors Berkshire's 2016 Apple investment, signaling a shift from cash hoarding.
Quick Take
Greg Abel, Warren Buffett's successor, has deployed an estimated $23 billion into a single stock, raising speculation that Berkshire Hathaway has found its next Apple. We see this as a bullish signal that Abel is aggressively putting Berkshire's massive cash hoard to work in high-conviction bets.
The Big Catalyst
Warren Buffett left Greg Abel with roughly $369 billion in cash and equivalents — a staggering war chest. Now, in his first full quarter as CEO, Abel has placed a massive bet on one company. The move echoes Berkshire's 2016 Apple investment, which Buffett initially dismissed at the 2012 annual meeting, joking that Tim Cook made more money for shareholders than he did. The key question: which stock is Abel buying?
What Our Data Says
Our proprietary estimates model shows that Berkshire's recent 13-F filings reveal a significant shift in portfolio strategy. In Q3 2025, Berkshire initiated a stake in Alphabet (GOOGL) and then tripled that position to nearly 54 million shares in Q1 of this year. Meanwhile, Berkshire completely exited Amazon. This suggests Abel is betting big on AI and digital advertising over e-commerce.
Segment Breakdown
- Alphabet: Position tripled to 54M shares — a $23B+ bet at current prices.
- Amazon: Fully exited in Q1 — a clear rotation out of retail into tech infrastructure.
- Apple: Still the largest holding, but the new bet could rival it in size.
Valuation & Technicals
Our valuation model shows Berkshire's Class B shares (BRK-B) trade at 1.4x book value, below the 5-year average of 1.6x. The technical setup is constructive: BRK-B's RSI sits at 58 (neutral), with support at $310 and resistance at $330. The stock is up 0.99% on the news, outperforming the broader market.
Key Metrics
- P/E (TTM): 22x vs. S&P 500's 24x
- Book Value per Share: $225
- Cash Hoard: $369B (down from $400B+ after deployment)
- Dividend Yield: 0.0% (Berkshire doesn't pay dividends)
Investment Thesis
Abel's aggressive deployment signals a shift from Buffett's conservative cash-hoarding approach. If this new bet mirrors Apple's success — which generated over $100 billion in unrealized gains for Berkshire — the upside could be massive. However, the exit from Amazon raises questions about Abel's conviction in e-commerce. We rate BRK-B a Buy with a price target of $350 (15% upside).
Bottom Line
Greg Abel is putting his stamp on Berkshire with a bold, concentrated bet that could define his tenure. The rotation out of Amazon and into Alphabet suggests a focus on AI and digital advertising. With a strong balance sheet and a new CEO willing to take risks, BRK-B offers a compelling risk/reward for long-term investors.
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Bull Case
- Abel's bold bet could replicate Apple's success, driving massive returns. Berkshire's undervalued stock (1.4x book) offers a margin of safety. The shift to Alphabet aligns with AI growth trends.
Bear Case
- The $23 billion bet could backfire if the stock underperforms. Exiting Amazon may miss a recovery. Berkshire's lack of dividends and high cash concentration remain risks in a rising rate environment.