Berkshire Hathaway has significantly increased its position in Alphabet, the parent company of Google, adding $17 billion to its stake during the second quarter. This move elevates Alphabet to the third-largest equity holding in Berkshire's portfolio, according to the company's latest 13F filing.

The filing reveals that Berkshire now holds approximately 106 million Alphabet shares, spanning both Class A and Class C stock, with a total value of around $36.6 billion. This surpasses Coca-Cola's $35.1 billion stake but remains behind Apple's $69.7 billion and American Express's $51.9 billion positions.

About 60% of the newly acquired shares came from a private placement, part of a $10 billion deal announced in June. The remaining $7 billion was purchased on the open market.

In addition to Alphabet, Berkshire increased its Delta Air Lines stake by 44%, adding roughly $1.6 billion. This marks a reversal of Warren Buffett's long-standing skepticism toward airline stocks, as the company had exited four carrier stocks at a loss in 2020. Berkshire also boosted its Macy's stake by 142% and added $280 million to homebuilder Lennar. The same quarter saw the announcement of a $6.8 billion acquisition of Taylor Morrison.

However, investor Michael Burry, known for predicting the 2008 subprime mortgage crisis, has expressed concerns about Berkshire's direction. In a Substack post, Burry wrote that his biggest fear for Berkshire was that when Warren Buffett stepped down, his successor would lack Buffett's patience for the 'fat pitch.' He believes this fear has come true.

My biggest fear for Berkshire Hathaway was that when Warren finally stepped down, the successor would be too old and otherwise not Warren, so would not have his patience for the fat pitch. I believe this fear has come true.

Burry acknowledged that CEO Greg Abel has only spent a portion of the company's cash pile, which hit a record $397 billion in the first quarter and fell to roughly $360 billion in the second. He described Abel's early moves as 'framing moves' rather than real investments, though he stopped short of recommending a short on the stock.

Despite the increased activity, both classes of Berkshire shares fell more than 3% this week, even as the company conducted its first major buyback in two years. Alphabet shares have also pulled back recently due to unrelated AI departures.

The market reaction suggests uncertainty about whether Abel's moves represent a genuine strategic shift or the cautious steps Burry described. Berkshire's future decisions with its remaining cash may provide clarity.