Key Points
In Q4 2025, Berkshire Hathaway sold 77% of its Amazon (NASDAQ: AMZN) position, which it had held since 2018, representing less than 1% of its equity portfolio. This move follows concerns over Amazon’s high capital expenditures projected at $200 billion in 2026, primarily for AI infrastructure, amidst challenges including increased tariffs and margin compression.
Conversely, Bill Ackman’s Pershing Square Capital Management has allocated 14% of its capital to Amazon, marking it as the third-largest position in Ackman’s portfolio. Ackman maintains a bullish outlook on Amazon, emphasizing its two leading business segments: a $700 billion e-commerce operation and Amazon Web Services (AWS), which is expected to double data center capacity by 2027 as it overcomes capacity constraints.
This divergence in investment strategies illustrates differing perceptions of Amazon’s long-term value, with Ackman positioning as a significant investor amid broader concerns reflected in Berkshire’s divestiture.
