 Worst News for Stocks in 50 YearsWall Street’s declared what could be the worst news for the U.S. stock market in 50 years. If Goldman Sachs and Morgan Stanley are right... this won't be like the crashes we're used to. What's about to hit America next could keep your portfolio in the red for 10 years or longer - unless you make a big change now. To hear about this decade-long crisis now being predicted by multiple Wall Street banks... And to see what you can do to prepare your wealth before this hits... Click here to learn how to defend your portfolio. Regards, Keith Kaplan
CEO, TradeSmith P.S. You may have noticed we see "surprise" crashes every year now. Think about it: rate spikes in 2022... the bank crisis in 2023... $8 trillion wiped out in 2024... $11 trillion wiped out during the tariff crash in 2025... and, this year, $12 trillion was wiped out in 30 days during the Iran War. Something is off and Wall Street suggests this could continue (and worsen) well into the 2030s. Click here to learn the truth about this market and see what you must do now to prepare.
This Week's Exclusive News
Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 HoldingWritten by Leo Miller. Originally Published: 8/25/2026. 
Key Points
- Berkshire Hathaway’s latest portfolio filing shows a roughly $299 billion equity portfolio following another quarter of notable buying and selling.
- Alphabet was the standout move, with Berkshire increasing its combined position by more than 80% and making it its third-largest reported holding.
- Berkshire also increased its exposure to homebuilders while exiting Constellation Brands and sharply reducing several financial, steel and consumer holdings.
- Special Report: Elon Musk’s Hushed FCC Filing. Sept 25th.
One of the world’s most closely watched investment firms, Berkshire Hathaway, is back in the news after releasing its latest round of portfolio updates. The company’s legendary longtime leader, Warren Buffett, stepped down as CEO at the end of 2025, with Greg Abel taking over on Jan. 1, 2026. Buffett remains Berkshire’s chairman, making this the second quarterly portfolio update since the leadership transition.
Berkshire significantly reshaped its portfolio in Q1, drastically reducing its number of holdings and selling out of many positions. While the changes in Q2 were not nearly as dramatic, Berkshire clearly indicated where it sees opportunities in the market. Berkshire Doubles Down on AlphabetBerkshire’s most notable move in Q2 did not involve initiating a new position or exiting a holding. Instead, the company added substantially to one of its biggest bets. During the quarter, Berkshire massively increased its position in Magnificent Seven member and AI hyperscaler Alphabet (NASDAQ: GOOGL). Combining Alphabet’s Class A and Class C shares, Berkshire now owns approximately 106 million shares of the company. That compares with just under 58 million shares in Q1, marking an 83% increase in a single quarter. As of the end of Q2, Berkshire’s Alphabet position was worth a whopping $37.8 billion, accounting for 12.6% of its portfolio and making Alphabet its third-largest holding. That represents a significant jump from Q1, when Alphabet was Berkshire’s seventh-largest holding. Clearly, Berkshire has developed significant conviction in Alphabet, which remains the only major AI hyperscaler represented in its reported equity portfolio. There is certainly reason for optimism about Alphabet’s position in the AI race, particularly because of the soaring growth at Google Cloud. Last quarter, cloud revenue increased 82% year over year, driven by strong demand for AI infrastructure and AI solutions. This figure surpassed the growth of Microsoft’s (NASDAQ: MSFT) Azure cloud and Amazon.com’s (NASDAQ: AMZN) AWS by a wide margin. These businesses grew by 43% year over year and 36.7% year over year, respectively. While this is a strong positive indicator for Alphabet’s AI future, not everything at the company is going well. There is a general belief that its Gemini model is falling behind ChatGPT and Claude. Notably, Alphabet has delayed the release of Gemini 3.5 Pro due to poor performance, heightening those concerns. Berkshire Adds to Homebuilders, Cuts Key Names Across Finance, Steel and StaplesBerkshire also made a clear move in another key area of the stock market during Q2: homebuilders. The company significantly increased its position in Lennar (NYSE: LEN), one of the country’s top homebuilders. Overall, Berkshire increased its combined position in Lennar’s two share classes by just under 30%, to 13.4 million shares. The position is now worth approximately $1.2 billion. Homebuilding giant D.R. Horton (NYSE: DHI) was also Berkshire’s only new holding during Q2, although the position is extremely small at just $580,000. The company also has a $75.7 million position in homebuilder NVR (NYSE: NVR), although that position was unchanged during the quarter. These moves are interesting, considering that homebuilders have struggled significantly for some time. Notably, all three names are in the red over the past 52 weeks, with Lennar down more than 30%. Lennar’s revenue growth has been negative for five consecutive quarters, although its 5.2% revenue decline in Q2 was a significant improvement from the 13.3% decline in Q1. Additionally, the company’s orders came in near the high end of its guidance, a positive forward-looking indicator. It is possible that Berkshire believes Lennar is beginning to bottom out as some financial metrics improve. However, it is important to note that Berkshire is not making a bet large enough to substantially hurt its overall portfolio performance. Its Lennar position represents only around 0.4% of the company’s portfolio. On the other hand, Berkshire has abandoned ship when it comes to Mexican beer giant Constellation Brands (NYSE: STZ). The firm sold out of this position in Q2 after reducing its share count by 95% in Q1. Constellation has failed to stage much of a recovery from its 2026 lows, with beer sales coming under significant pressure. Berkshire also made large cuts to its positions in major companies such as Capital One Financial (NYSE: COF), Nucor (NYSE: NUE) and Kroger (NYSE: KR). Its holdings in these names fell by 58%, 52% and 22%, respectively. Berkshire’s Hyperscaler Bet Still Has Much to ProveAlphabet continues to be the biggest story surrounding Berkshire’s recent portfolio moves, while its other top holdings are long-held positions. Looking ahead, growth at Google Cloud will be the biggest factor to watch, as much of Alphabet’s AI-related revenue comes from this segment. Cloud revenue was $24.8 billion last quarter, representing a run rate of just under $100 billion. That figure includes a significant amount of non-AI revenue. Meanwhile, the company expects to spend $200 billion on capital expenditures (CapEx) in 2026 at the midpoint. Thus, while Cloud is growing briskly, Alphabet still has a long way to go to justify its AI spending. Eventually, the company will need AI revenue to surpass its CapEx.
This ad is sent on behalf of TradeSmith at 1125 N. Charles Street, Baltimore, Maryland 21201. If you’re not interested in this opportunity, please click here.
. |
