Berkshire Q1 2024: Builds Delta Position, Boosts Alphabet, Exits Amazon

Berkshire Hathaway disclosed its first 13F portfolio filing on May 15, 2024, under new CEO Greg Abel, revealing significant portfolio restructuring in the first quarter. The company deployed approximately $2.65 billion to establish a new position in Delta Air Lines, increased its stake in Alphabet (Google’s parent company), and liquidated holdings in Amazon, Visa, and Mastercard, among others.

Portfolio Overview

As of quarter-end, Berkshire’s total portfolio stood at $263 billion, down from $274 billion in the prior quarter. The company’s top 10 holdings accounted for 90.72% of the portfolio, up from the previous quarter. Berkshire’s ten largest positions, in order, were: Apple, American Express, Coca-Cola, Bank of America, Chevron, Occidental Petroleum, Alphabet, Berkshire Hathaway Inc., Moody’s, and Kraft Heinz.

Overall, Berkshire initiated 3 new positions, increased 4 existing holdings, liquidated 16 positions, and reduced 6 others. The total number of holdings contracted from 42 to 29 stocks.

Alphabet: Major Concentration Play

Among the top 10 holdings, Berkshire increased only Alphabet during the quarter. The company purchased more than 36.4 million Class A shares of Alphabet, representing a 204% increase from the prior quarter. The total market value of this position grew to $15.6 billion, rising from the 10th-largest holding to the 7th-largest in Berkshire’s portfolio. Additionally, Berkshire established a new position in Alphabet Class C shares valued at $1 billion at quarter-end, bringing total Google holdings to $16.6 billion.

Alphabet has been one of the few large technology companies Berkshire has consistently increased over recent quarters. At Berkshire’s annual shareholder meeting in early May, CEO Greg Abel noted that Berkshire subsidiaries, including BNSF Railway, were exploring artificial intelligence-related opportunities.

New Positions: Delta Air Lines and Macy’s

Beyond the new Alphabet Class C position, Berkshire established only two other new holdings in the first quarter. The company built a position of approximately 39.8 million shares in Delta Air Lines, with a market value near $2.65 billion, making it Berkshire’s 14th-largest holding. This marks the first major re-entry into airline stocks since 2020, when Warren Buffett liquidated positions in Delta, United Airlines, Southwest Airlines, and American Airlines during the pandemic. The move signals management’s renewed optimism regarding U.S. consumer spending, business travel, and corporate profitability prospects.

Berkshire also initiated a position in Macy’s during the quarter, though specific share counts were not detailed in the filing.

Liquidations: Amazon, Visa, and Mastercard

Berkshire completely exited several major financial and technology holdings. The company liquidated 2.276 million shares of Amazon, fully closing a position held for approximately seven years. Buffett had first purchased Amazon in Q2 2019, later remarking that his long-standing caution toward technology stocks made the delayed entry “stupid.” In the prior quarter (Q4 2023), Amazon had already experienced the largest percentage reduction, with holdings declining over 77%.

Berkshire also fully exited Visa and Mastercard positions. The company liquidated 8.3 million shares of Visa for approximately $2.91 billion and closed its Mastercard position for roughly $2.28 billion.

Reductions in Energy and Financial Stocks

Berkshire reduced several top 10 holdings during the quarter. The company cut its Chevron position by 45.78 million shares, representing a 35% reduction worth approximately $2.4 billion. The remaining Chevron stake had a market value of $17.457 billion at quarter-end. Chevron stock had reached all-time highs in March amid U.S.-Iran tensions and rising oil prices. Berkshire originally purchased Chevron around $65 per share in 2020, made partial reductions in 2021, and significantly increased holdings at an average price of $124 per share around the time of the Russia-Ukraine conflict in 2022.

Berkshire also reduced its Bank of America position by 3.67 million shares, with the remaining stake valued at $25 billion at quarter-end.

Additional reductions included positions in DeVries, Constellation Brands, and Nucor Steel.

Berkshire Hathaway’s ten largest portfolio positions as of Q1 2024