Billionaire investor Warren Buffett has dramatically reduced Berkshire Hathaway's stake in Bank of America by 45% while simultaneously establishing a massive $4.3 billion position in Alphabet, marking one of the conglomerate's most significant portfolio shifts as the 94-year-old prepares to hand over CEO duties to successor Greg Abel on January 1, 2026.
The moves come as Berkshire continues its 12th consecutive quarter as a net seller of stocks, with the company now sitting on a record $381.7 billion in cash and equivalents, according to regulatory filings released in November.
Since mid-July 2024, Berkshire has sold approximately 465 million Bank of America shares worth more than $6 billion, according to filings with the Securities and Exchange Commission. The sales reduced Berkshire's ownership below 10%, eliminating the requirement to report transactions within two business days.
Buffett's persistent selling of Bank of America contrasts sharply with his purchase of 17.8 million Alphabet Class A shares during the third quarter, valued at $4.3 billion as of September 30. The position now ranks as Berkshire's 10th-largest equity holding.
What Happened
Berkshire began reducing its Bank of America position in July 2024 and continued selling through five consecutive quarters. The conglomerate's stake has fallen from more than 1.03 billion shares to approximately 568 million shares, representing a decline from roughly 13% ownership to under 10%.
The Bank of America sales came as the Federal Reserve entered a rate-easing cycle, potentially reducing net interest income for the nation's most interest-rate-sensitive major bank. Buffett orchestrated a $5 billion investment in Bank of America preferred stock in August 2011 when shares traded at a 68% discount to book value. As of late November, the stock traded at a 39% premium to book value.
Meanwhile, Berkshire's Alphabet purchase marks its biggest technology investment since first buying Apple shares. The search giant commands approximately 90% of global internet search market share and generated $56.6 billion in search revenue during the third quarter alone, up 14.5% year-over-year.
The moves come as Berkshire announced that Abel will take over as president and CEO on January 1, 2026, while Buffett remains as chairman. The transition marks the end of Buffett's 60-year tenure as CEO, during which Berkshire's Class A shares increased by nearly 6,200,000%.
Also read: Ethereum Breakdown Points To 28% Decline, Long-Term Holder Data Confirms
Why It Matters
The portfolio rebalancing signals Buffett's concerns about bank valuations and interest rate sensitivity while demonstrating confidence in Alphabet's competitive moat despite the company's premium valuation. Alphabet shares have climbed approximately 13,000% since its 2004 initial public offering, including dividends.
For cryptocurrency investors, Buffett's moves underscore his continued preference for traditional cash-generating businesses over digital assets. The billionaire has famously called Bitcoin "probably rat poison squared" and predicted cryptocurrencies "will come to a bad ending."
Despite his public skepticism, Berkshire has indirect cryptocurrency exposure through its $750 million investment in Nu Holdings, a Brazilian digital bank that operates cryptocurrency platform Nucripto and issued its own digital currency, Nucoin. The Nu Holdings stake has appreciated nearly 50% in 2024 alone.
Buffett's persistent cryptocurrency criticism stands in stark contrast to the broader institutional adoption of digital assets, with Bitcoin trading above $96,000 as of late November 2025, up approximately 120% year-to-date. During a 2022 shareholders meeting, Buffett said he wouldn't accept all the Bitcoin in the world for $25 because "it isn't going to do anything."
The leadership transition to Abel, who has overseen Berkshire's non-insurance businesses since 2018, raises questions about whether the conglomerate's investment philosophy will evolve. Abel has pledged to maintain Buffett's disciplined approach to capital allocation while bringing more hands-on operational management to the company's 60-plus subsidiaries.
Berkshire's record cash pile and continued stock sales suggest Buffett and Abel see limited attractive investment opportunities at current market valuations, with the company's preferred valuation metric - the ratio of total stock market value to GDP - recently hitting all-time highs.
Read next: MegaETH Scraps $1B Fundraise as Technical Failures Block Users