Greg Abel's first quarter as Berkshire CEO produced the clearest signal yet of how his portfolio priorities differ from Warren Buffett's. He sold 45.8 million shares of Chevron and more than tripled the conglomerate's stake in Alphabet.
Greg Abel's first quarter as Berkshire Hathaway CEO produced the clearest signal yet of how his portfolio priorities differ from Warren Buffett's. He sold 45.8 million shares of Chevron, the largest single-quarter reduction since the position opened in 2020, and more than tripled the conglomerate's stake in Alphabet.
Chevron's stock had rallied from $152 to $207 between the start of 2026 and the end of the first quarter, a move that delivered triple-digit percentage returns from Buffett's initial purchases. The forward price-to-earnings ratio climbed to near 18, up from 10 at the close of 2024. For a cyclical company, that multiple is historically stretched. Abel may have viewed the Iran-driven surge in crude prices – and the closure of the Strait of Hormuz – as a temporary lift. Energy supply disruptions tend to be short-lived, and the valuation window was closing.
On the other side of the trade, Abel bought 36.4 million shares of Alphabet's Class A stock and opened a new position in the Class C shares, purchasing 3.6 million. The buys more than tripled Berkshire's total stake in Google's parent company. In June, Alphabet announced an $84.75 billion equity offering, and Berkshire agreed to buy $10 billion of it in a private placement split evenly between the two share classes. By the end of July, Alphabet was a roughly $30.8 billion position, making it Berkshire's fifth-largest holding.
Alphabet's appeal rests on a durable moat. Google Search commanded over 91% of global internet search traffic in July, and YouTube ranks as the second-most-visited social site behind Google itself. That duopoly gives Alphabet exceptional pricing power in digital advertising. The bigger driver, Abel appears to believe, is artificial intelligence. Alphabet has integrated generative AI and large language models into Google Cloud, the world's third-largest cloud infrastructure platform by spend. Sales growth for that high-margin segment has accelerated sharply as a result.
The stock reflects that optimism. GOOGL stock page carries an Alpha Score of 76 out of 100, a "Strong" rating. Shares were trading at $356.13, up 6.73% on the day. The score reflects the combination of the search-and-advertising cash flow with the AI-driven cloud growth that Abel is betting on.
Berkshire's Class B shares carry an Alpha Score of 50 out of 100, a "Mixed" label. The stock page is BRK.B stock page.
Abel's first quarter as CEO suggests a willingness to rotate out of cyclicals with diminished value propositions and into tech names with structural advantages. The Chevron sale and Alphabet purchase are the most concrete signal yet of how his portfolio priorities differ from Buffett's.
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