Buffett acquires US$4.9 billion stake in Google parent Alphabet

WARREN Buffett’s Berkshire Hathaway acquired 17.9 million shares of Google parent Alphabet during the third quarter, while further trimming its holdings in Bank of America and Apple.

Berkshire’s Alphabet stake, representing 0.31 per cent of the outstanding shares, was worth about US$4.9 billion as of Friday’s (Nov 14) market close, according to a regulatory filing.

Shares of Alphabet rose 1.6 per cent to US$280.86 in extended trading at 4.28 pm in New York.  

Buffett, 95, who plans to step down as chief executive officer at year-end, has been finding ways to deploy some of Berkshire’s cash pile, which rose to a record US$382 billion at the end of the quarter. The Omaha, Nebraska-based conglomerate recently reached a deal to buy Occidental Petroleum’s petrochemical business for US$9.7 billion and acquired a US$1.6 billion stake in UnitedHealth Group.

Berkshire trimmed its Apple stake by 15 per cent, leaving it with a holding valued at US$60.7 billion at the end of the quarter. The Cupertino, California-based iPhone maker still accounts for almost a quarter of Berkshire’s equity portfolio. 

The conglomerate sold 37.2 million Bank of America shares, leaving it with a 7.7 per cent stake in the Wall Street firm.

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Berkshire also exited its position in US home builder D.R. Horton. BLOOMBERG