The Motley Fool·2025-12-12 03:30Core Insights - Warren Buffett is stepping down as CEO of Berkshire Hathaway at the end of the year after 60 years of leadership, during which the company has become a leading conglomerate and consistently outperformed the market [1] - Berkshire Hathaway has been actively selling shares, notably reducing its stakes in Apple and Bank of America, while making a significant investment in Alphabet [2][4] Investment Moves - Berkshire Hathaway has reduced its Apple shares to just over 238 million, representing 21.4% of its stock portfolio, and its Bank of America shares to just over 568 million, making up 9.6% of its stock portfolio [2] - The reduction in Apple shares is attributed to a disconnect between its valuation and projected earnings growth, with Apple trading at 33.6 times its projected earnings, a high premium compared to other major tech stocks [5][6] - The sale of Bank of America shares is seen as a strategic move to lock in profits from a stock that has significantly appreciated since Berkshire's initial investment in 2011 [8][9] New Investment in Alphabet - Berkshire Hathaway's investment in Alphabet marks a shift as the company has historically avoided high-growth tech stocks, now owning around 17.8 million shares [4] - Alphabet is recognized for its strong position in artificial intelligence, having achieved its first-ever $100 billion quarter in revenue and generating nearly $24.5 billion in free cash flow [11][13] - The company has a robust balance sheet, a competitive advantage in Google Search, and has recently begun paying dividends, aligning with Berkshire Hathaway's investment criteria [15][16]