Bill Ackman Cuts Alphabet Stake As Warren Buffett's Berkshire Hathaway Builds Its Own
News Summary
Pershing Square Capital Management, led by Bill Ackman, implemented minor adjustments to its portfolio during the third quarter of 2025. The fund notably reduced its stake in Alphabet Class A shares by 10%, decreasing its holdings to 4,843,973 shares. This reduction follows an increase in Class A shares by Pershing Square in the second quarter. Concurrently, Pershing Square also made small divestitures (less than 1% each) from its positions in Restaurant Brands International, Brookfield, and Uber Technologies. Significantly, these changes by Pershing Square coincide with a 13F filing that revealed Warren Buffett's Berkshire Hathaway initiated a new position in Alphabet Class A shares during the same quarter. Despite the reduction in Class A, Alphabet Class C remains a top holding for Pershing Square, alongside Uber, Brookfield, Howard Hughes Holdings, Restaurant Brands International, Amazon.com Inc, Chipotle Mexican Grill, and Hilton Worldwide Holdings.
Background
A 13F filing is a quarterly report required by the U.S. Securities and Exchange Commission (SEC) from institutional investment managers with over $100 million in assets under management. These reports disclose their holdings in U.S.-listed stocks, options, and convertible bonds, offering insights into the investment strategies of large fund managers. Bill Ackman's Pershing Square Capital Management is known for its concentrated and activist investment strategy, typically taking large positions in a small number of companies. Warren Buffett's Berkshire Hathaway, on the other hand, is renowned for its value investing approach, focusing on long-term holdings in companies with strong economic moats and predictable cash flows.
In-Depth AI Insights
What do Ackman's and Buffett's opposing moves on Alphabet signal? - Ackman's reduction might reflect a tactical re-evaluation of Alphabet's valuation or growth trajectory within the current market cycle. Pershing Square's strategy often involves more active trading to capitalize on short-term catalysts or mitigate risks, especially given its passive holding in Alphabet Class C while trimming Class A, potentially indicating an optimization of risk/reward across different share classes. - Buffett's new position, conversely, suggests a conviction in Alphabet's long-term value and market dominance. Given Berkshire Hathaway's investment horizon and preference for 'moat' companies, its entry into Alphabet could signal a belief in the company's robust earning power and sustained growth potential despite regulatory scrutiny and competition, possibly viewing the current valuation as attractive. Does this divergent strategy reflect differing views on the future growth prospects of tech giants? - Pershing Square's reduction is not an outright abandonment of Alphabet, as Class C remains a top holding. This could suggest Ackman is more focused on optimizing his capital allocation within the company or taking a more cautious stance amidst increased macroeconomic uncertainty or specific industry headwinds. It's less a repudiation of the tech giant growth narrative and more a fine-tuning of risk-adjusted returns. - Berkshire's move could signify a subtle but important shift in its investment strategy to consider specific high-tech, high-growth but mature companies beyond traditional value plays. This may reflect Buffett's recognition of the long-term value in tech giants with established market leadership, strong brands, and proven earnings, especially after some valuation adjustments have occurred. What are the implications for investors evaluating big tech stocks? - This divergence reminds investors that even highly experienced fund managers can hold different views on the valuation and near-term prospects of the same asset. Ackman's tactical adjustment and Buffett's long-term initiation can both be interpreted as different validations of Alphabet's value, but with vastly different time horizons and objectives. - For average investors, this highlights the importance of diligent analysis and understanding one's own investment goals. Rather than blindly following the short-term actions of a prominent investor, it's crucial to delve into the company's fundamentals and integrate an understanding of the macroeconomic environment and industry trends to build a long-term portfolio aligned with one's risk tolerance. Large technology companies remain a critical part of the market, but their future performance will increasingly depend on specific execution, innovation capabilities, and changes in the regulatory landscape.