Berkshire Cuts Amazon Stake, Makes Bet on New York Times

Berkshire Hathaway Inc. has significantly reduced its stake in Amazon, selling 77% of its shares in the company during Warren Buffett’s final quarter as CEO. The move was disclosed in a regulatory filing on February 18, 2026.

The reduction from 10 million to 2.28 million shares reflects a strategic shift away from high-valuation technology stocks. Buffett had initially acquired Amazon shares in 2019, but the decision to trim the position appears to be driven by concerns about stock valuations and market dynamics.

In addition to Amazon, Berkshire also reduced its Apple stake by 75% since September 2023 and its Bank of America stake by 50% since mid-2024. These actions align with Buffett’s long-standing preference for companies with strong fundamentals and attractive valuations.

Why Did This Happen?

Warren Buffett has historically been cautious about investing in technology companies with high price-to-earnings ratios. The rationale for selling Amazon and Apple shares appears to be based on valuation concerns. Apple’s trailing 12-month P/E ratio had risen to 33, far above the levels Buffett typically finds attractive.

Buffett’s decision to reduce stakes in Apple and Bank of America may also have been influenced by changes in tax policy and succession planning. The reduced positions make the portfolio more manageable for Greg Abel, Buffett’s successor as CEO of Berkshire.

Buffett’s final major investment was in The New York Times, where Berkshire acquired 5.06 million shares worth $351.7 million. This move marks a return to the media industry for Berkshire, which had sold its newspaper empire in 2020.

How Did Markets Respond?

The New York Times shares experienced a significant positive reaction following the announcement. Shares rose more than 10% in premarket trading and closed near a record high on February 18.

The market response indicates that investors view the New York Times as a strong contender in the evolving media landscape. The company has demonstrated resilience with a growing digital subscriber base and strong advertising revenue according to AP News.

Despite the positive reaction, the overall market for technology stocks has been mixed. Apple, for example, has underperformed the S&P 500 this year, with its stock falling about 3% year to date.

What Are Analysts Watching Next?

Analysts are closely monitoring the implications of Buffett’s moves for Berkshire’s portfolio and the broader market. The reduction in high-valuation technology stocks suggests a more conservative approach, which may be in response to the current economic environment.

The New York Times investment is particularly noteworthy because it reflects a confidence in the media industry’s ability to adapt and thrive. The company’s success in transitioning to digital and diversifying its revenue streams has made it an attractive investment.

Greg Abel, now CEO of Berkshire, faces the challenge of managing a portfolio that has been restructured under Buffett’s guidance. Investors will be watching to see how he approaches capital allocation and investment strategy.

Berkshire’s cash reserves have also reached record levels, exceeding $300 billion. This position provides flexibility for future investments but also raises questions about the opportunity cost of holding large amounts of cash.

Warren Buffett’s final quarter as CEO has been marked by a strategic repositioning of the portfolio. The moves reflect a disciplined approach to investing and a focus on long-term value creation.

The investment in The New York Times and the reduction in Apple and Amazon shares suggest a shift in focus toward more stable and well-understood businesses. This strategy may provide a hedge against market volatility and align with Buffett’s investment philosophy.