Warren Buffett Just Tripled Down on the Stock Bill Ackman Is Selling

Berkshire Hathaway (NYSE:BRK.B), present tally by CEO Greg Abel with Warren Buffett serving arsenic chairman, disclosed successful Q1 2026 13F filings that it astir tripled its Alphabet involvement to astir 57.8 cardinal shares worthy astir $16.6 billion, vaulting Alphabet (NASDAQ:GOOGL) into a top-five Berkshire holding.

In the aforesaid window, Bill Ackman's Pershing Square reportedly liquidated much than 95% of its Alphabet presumption and reallocated into Microsoft. Ray Dalio's Bridgewater bought heavy connected the aforesaid broadside arsenic Berkshire, and Trump and Pelosi disclosed early-2026 buys of Alphabet arsenic well. The astute wealth divided itself successful fractional implicit the aforesaid stock.

Why Berkshire tripled down connected Alphabet

The lawsuit Abel's squad appears to beryllium underwriting is straightforward, which is partially wherefore it feels truthful Buffett-shaped. Alphabet's Q1 2026 results showed EPS of $5.11 versus a $2.63 consensus, gross of $109.90 billion, up 21.8% twelvemonth implicit year, and Google Cloud maturation of 63% with backlog astir doubling 4th implicit 4th to implicit $460 billion. That backlog is the fig that matters. It is contracted aboriginal demand, not a projection, and it dwarfs thing Alphabet has antecedently reported.

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Valuation is the different half. Alphabet trades astatine a trailing P/E of 28x and a guardant P/E of 25x, with an expert people of $417. Sundar Pichai's framing was characteristically measured: "Our AI investments and afloat stack attack are lighting up each portion of the business." Shares are up 115% implicit the past twelvemonth and 15% twelvemonth to date, but down 6% implicit the past month. Berkshire bought a compounder, connected a pullback, astatine a aggregate cheaper than the S&P average. That is the Buffett playbook adjacent erstwhile Buffett isn't pushing the buttons.

Ackman's pivot to Microsoft

Ackman's exit deserves to beryllium work arsenic a reallocation, not a thesis-breaking merchantability signal. He moved superior into Microsoft (NASDAQ:MSFT), wherever the AI numbers are arguably louder. Microsoft's astir caller 4th showed an AI concern yearly tally complaint of $37 billion, up 123% twelvemonth implicit year, Azure maturation of 40%, and commercialized RPO of $627 billion, up 99%. The restructured OpenAI concern leaves Microsoft with a astir 27% involvement worthy astir $135 cardinal and IP rights extended done 2032.