ZACKS·2025-11-18 17:41Core Insights - Berkshire Hathaway Inc. is rebalancing its portfolio by purchasing shares in Alphabet and reducing its stake in Apple, indicating a strategic shift in investment focus [1][8] - The company has sold its stake in Chinese electric vehicle maker BYD and has been increasing investments in Japanese firms since July 2019, aiming for income generation and geographical diversification [3][4] Investment Moves - Berkshire purchased approximately 17.85 million shares of Alphabet for about $4.34 billion, while trimming its Apple holdings by 41-42 million shares, leaving it with 238.2 million shares [1][8] - The reduction in Apple and Bank of America stakes suggests a deliberate effort to lower concentration risk in its investment portfolio [4] Market Position and Competitors - Alphabet holds a dominant position in the online search market with around 90% market share and is expanding in cloud computing and autonomous vehicles, making it an attractive investment for Berkshire [2] - Competitors like Progressive Corporation and Travelers Companies are focusing on inorganic growth strategies to enhance their insurance portfolios and maintain competitiveness in the market [5][6] Financial Performance - Shares of Berkshire Hathaway (BRK.B) have increased by 11.1% year-to-date, outperforming the industry average [7] - Despite revenue growth expectations for 2025 and 2026, EPS estimates for BRK.B have declined, with a 15.8% decrease for Q4 2025 over the past week [10][11] Valuation Metrics - BRK.B is currently trading at a price-to-book value ratio of 1.55, which is above the industry average of 1.48, indicating a relatively expensive valuation [9] - The company holds a Zacks Rank of 3 (Hold), reflecting a neutral outlook in the current market environment [12]