Warren Buffett's $863 Million "Secret" Portfolio Dumped Alphabet and Broadcom, but Has Over 17% of Invested Assets in This Proven Moneymaking Strategy
Berkshire Hathaway's 'secret' portfolio, managed by NEAM, sold 97% of its Broadcom (AVGO) shares and 48% of Alphabet (GOOGL) shares in Q2. The portfolio also holds significant positions in S&P 500 index funds SPY and VOO, totaling 17.3% of its assets. Buffett has long recommended S&P 500 index funds for retail investors.
How this was made
The 30-second read
Why it matters
The disclosed sell‑offs represent a fresh, material change in holdings that could influence short‑term price action for the two stocks.
Market read
The large-scale divestments by a high‑profile investor are likely to create short‑term selling pressure on Alphabet and Broadcom, while highlighting a strategic shift toward broad market exposure.
What to watch
The portfolio also increased holdings in S&P 500 index ETFs, suggesting a shift toward broader market exposure rather than a bearish outlook on individual tech names.
Background
Warren Buffett's secret portfolio, managed by New England Asset Management, recently reduced its positions in Alphabet and Broadcom while increasing exposure to S&P 500 index funds.
Ticker impact
NEAM sold 48% of its Alphabet Class A shares in the second quarter, indicating a large sell‑off by Buffett's secret portfolio.
likely pressure as the market prices in the share dump
A 48% reduction by a $863 M portfolio signals significant supply, which typically depresses the stock.
NEAM dumped 97% of its Broadcom shares, effectively exiting its position in the chipmaker.
likely pressure as the market absorbs the large sell order
A near‑complete liquidation of a large holding creates immediate selling pressure on the stock.
Market effects
The tech sector may see broader sentiment drag as a high‑profile investor reduces exposure to AI‑related hardware and software stocks.
U.S. equity markets could experience modest pullback in large‑cap tech indices.
Global investors tracking Berkshire's moves may adjust exposure to AI and semiconductor themes.
Counterpoint
Some investors may view the sell‑off as a buying opportunity if they believe the fundamentals remain strong.
Key entities
- investment managerNew England Asset Management
Subsidiary of Berkshire Hathaway that manages the secret portfolio.
- individualWarren Buffett
Chairman of Berkshire Hathaway, whose secret portfolio actions are closely watched.
