A Detailed Guide to Understanding Berkshire Hathaway's Historical Investment in Snowflake
Step 1: Let's start with a crucial question that will immediately grab your attention...
Do you want to know the shocking truth about how much Snowflake stock Berkshire Hathaway owns right now?
Well, here it is: As of the most recent filings and public information, Berkshire Hathaway owns 0 shares of Snowflake (SNOW).
That's right, zero. The entire position has been sold.
This might be a surprising fact for many who remember the fanfare surrounding Warren Buffett's initial, and highly unusual, investment in the cloud data platform's IPO. So, how did we get here? Let's take a step-by-step journey through this fascinating investment saga.
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| How Much Snowflake Does Berkshire Hathaway Own |
Step 2: The Genesis of the Unusual Investment
Tip: Look for small cues in wording.
Sub-heading: Buffett's Break from Tradition
In September 2020, Berkshire Hathaway made headlines when it announced its intention to invest in Snowflake's Initial Public Offering (IPO). This was a significant event for several reasons.
First, Buffett has long been known for his aversion to IPOs, considering them speculative.
Second, the investment was in a high-growth technology company, a sector he has traditionally shied away from, preferring more established, "understandable" businesses.
So, why did he do it? It's widely believed that the investment was not a typical "Buffett pick" but was influenced by his portfolio managers, Todd Combs and Ted Weschler, who are known to have a broader investment mandate. The company's unique business model and strong growth prospects likely caught their eye.
Step 3: The Initial Purchase and a Surprising Debut
Sub-heading: Buying at a Bargain (Relatively Speaking)
Berkshire Hathaway's initial investment in Snowflake was twofold:
QuickTip: A short pause boosts comprehension.
A Direct Purchase: Berkshire purchased $250 million of Snowflake stock directly from the company at its IPO price of $120 per share.
A Secondary Purchase: They also bought an additional 4 million shares from a former Snowflake CEO, Robert Muglia, at the same IPO price.
This totaled a little over 6 million shares and an investment of approximately $570 million. The move was seen as a major vote of confidence. However, Snowflake's IPO day was nothing short of a spectacle. The stock opened at around $245, more than double its IPO price. This meant that Berkshire Hathaway was sitting on a significant paper profit from day one.
Step 4: The Holding Period and the Stock's Volatility
Sub-heading: A Rollercoaster Ride
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For several years, Berkshire held on to its Snowflake stake. The stock price experienced significant volatility. It surged to over $400 in late 2020 and early 2021 before experiencing a sharp decline.
Throughout this period, market analysts and investors speculated on whether Berkshire would add to its position, trim it, or hold on for the long term. The investment was a departure from the typical "buy-and-hold forever" philosophy, making it a subject of continuous scrutiny. Snowflake, while a strong company, was not yet profitable, which is a key metric Buffett often considers.
Step 5: The Exit: Selling the Entire Stake
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Sub-heading: Quietly Selling Off a Billion-Dollar Position
The most important step in this guide is the final one. In the second quarter of 2024, Berkshire Hathaway sold its entire holding of Snowflake stock. The sale was disclosed in a regulatory filing, and it showed that Berkshire had liquidated its approximately 6.1 million shares.
This decision was likely driven by several factors:
The stock's underperformance: After its initial surge, the stock had struggled, facing intense competition and concerns about its valuation.
A change in leadership and slowing growth: Snowflake saw a CEO change and had revenue growth that was beginning to slow.
A questionable path to profitability: As a high-growth company, Snowflake was still heavily investing in its business and had not yet achieved profitability, which may have been a long-term concern for Berkshire.
Berkshire reportedly exited its position for an estimated profit of between $30 million and $210 million, depending on the exact sale price.
So, to be absolutely clear, as of today, June 2025, Berkshire Hathaway owns NO Snowflake stock.
The Snowflake investment, while interesting, was a short-term, opportunistic play rather than a classic, long-term Buffett holding. It serves as a great example of how even legendary investors are willing to adapt and exit positions that no longer align with their evolving views or market conditions.
QuickTip: Re-reading helps retention.
10 Related FAQ Subheadings with Quick Answers
How to find out Berkshire Hathaway's current stock holdings? You can find out Berkshire Hathaway's current stock holdings by reviewing their quarterly 13F filings with the U.S. Securities and Exchange Commission (SEC). These filings are made within 45 days of the end of each quarter and provide a snapshot of their equity portfolio.
How to understand Warren Buffett's investment philosophy for technology stocks? Warren Buffett's investment philosophy for technology stocks has evolved. While he traditionally avoided the sector due to a lack of understanding, he has made significant investments in companies like Apple. His approach focuses on businesses with a durable competitive advantage, strong management, and consistent earnings, even in the tech sector.
How to calculate the profit Berkshire Hathaway made on its Snowflake investment? You can estimate the profit by comparing the average purchase price (around $120 per share) with the average selling price during Q2 2024 (which was approximately $148 per share). Multiplying the difference per share by the total number of shares sold (6.1 million) provides an estimate of the total profit, which was likely in the tens of millions of dollars.
How to interpret Berkshire Hathaway's sale of a stock? Berkshire's sale of a stock can be interpreted in several ways. It may indicate a change in the company's fundamentals, a better investment opportunity has arisen, or that the stock no longer meets their valuation criteria. It's not a direct signal for other investors to sell, but it does warrant a closer look at the company's prospects.
How to know if Warren Buffett personally made the Snowflake investment? While the investment was made by Berkshire Hathaway, it is widely believed to have been initiated by one of Buffett's two investment managers, Todd Combs or Ted Weschler, who manage a portion of the portfolio independently.
How to learn about the history of Berkshire Hathaway's tech investments? You can learn about Berkshire Hathaway's tech investment history by researching their past and present holdings, such as IBM (which they sold) and Apple (their largest holding), as well as their investment in Amazon. These cases show a gradual shift in their approach to the tech sector.
How to follow Snowflake's stock performance after Berkshire's exit? You can follow Snowflake's stock performance on any financial news website or trading platform. Look at its stock chart, key financial metrics like revenue growth, and any news related to its business, competition, and leadership.
How to define an IPO (Initial Public Offering)? An IPO is the process where a private company first offers its shares to the public on a stock exchange. This allows the company to raise capital from public investors.
How to find a company's regulatory filings like the 13F? You can find a company's regulatory filings, including the 13F, on the SEC's EDGAR database, which is a public resource for corporate filings. Most major financial news websites also provide access to these filings.
How to build a portfolio like Berkshire Hathaway? Building a portfolio like Berkshire Hathaway involves focusing on a concentrated number of high-quality companies with strong fundamentals, a durable competitive advantage, and a history of profitability. It also involves a long-term, patient approach and avoiding speculative investments.
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