Berkshire After Buffett | Tech Moves From Exception to Allocation

What the Bending Spoons and Alphabet purchases say about the new allocation regime at Greg Abel’s Berkshire Hathaway

The old Berkshire did own tech, but as exceptions. IBM (2011), BYD (2008), Apple (2016) and the lieutenant-led Amazon and Snowflake positions were each bought on a specific rationale, usually at a modest multiple. None reflected a sector view. Under Abel, tech has become an allocation. In nine months Berkshire has built Alphabet into a top-three holding, ended a 14-quarter streak of net selling, and now owns ~4% of Bending Spoons at roughly 10x forward EV/sales. The more novel shift is how Berkshire buys. Both headline tech moves were primary capital: a $10B Alphabet placement and a Bending Spoons IPO allocation plus a $33 private placement. Berkshire is acting as anchor capital, not just as a buyer in the market. “Value” is being redefined rather than abandoned. Bending Spoons is a growth multiple on a value process. Berkshire is backing a capital allocator that does in software what Berkshire did in industrials.

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