This article first appeared on GuruFocus.
Berkshire Hathaway (NYSE:BRK.B) rose 0.27% intraday after the company agreed to invest $10 billion in Alphabet (NASDAQ:GOOG) through a private placement, split between $5 billion in Class A shares at $351.81 and $5 billion in Class C shares at $348.20. The investment is part of Alphabet’s broader $80 billion equity raise to fund AI infrastructure expansion. Berkshire has been building its Alphabet position since the third quarter of last year, and more than tripled its stake last month to $16.6 billion, making it one of Berkshire’s largest common stock holdings.
The private placement adds to what has been an active capital deployment day for Abel. On Monday, Berkshire announced an $8.5 billion acquisition of homebuilder Taylor Morrison (NYSE:TMHC), Greg Abel’s first major deal since taking over from Warren Buffett (Trades, Portfolio) at the start of the year.
Despite the active capital deployment on Monday, both deals remain relatively small compared to Berkshire’s nearly $400 billion in cash and short-term Treasuries.
