Did Warren Buffett Give Up on Amazon? He Sold 77% Before Leaving

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Quick Read

• Berkshire Hathaway sold 77% of its Amazon (AMZN) stake in Q4. Investment managers controlled the Amazon position, not Warren Buffett himself.

• Amazon Web Services hit a $142B annual revenue run-rate with growth at its fastest pace in three years.

• Amazon plans $200B in capital expenditures this year focused on data centers and AI infrastructure.

• A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.

Warren Buffett first invested in Amazon (NASDAQ:AMZN) in 2019, purchasing about 536,000 shares valued at roughly $930 million for Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B). This position expanded over time — particularly after Amazon’s 20:1 stock split in 2022 — reaching 10 million shares worth approximately $2.1 billion by the end of last year’s third quarter.

However, in the fourth quarter — Buffett’s final period as CEO before stepping back on Dec. 31 — Berkshire sold 7,724,000 shares, a 77% reduction. This left the firm with 2,276,000 shares valued at $525 million. Did Buffett abandon his long-held admiration for Amazon just before leaving the day-to-day oversight of Berkshire?

Not Actually a Buffett Pick

The initial 2019 purchase of Amazon shares was not actually made by Buffett himself. Instead, it was handled by one of his investment managers, either Ted Weschler or Todd Combs, who oversaw portions of Berkshire’s portfolio. Buffett has publicly acknowledged this, noting in interviews that he did not personally select the stock at the time.

Despite this, Buffett has expressed strong praise for Amazon founder Jeff Bezos. In a 2018 CNBC interview, Buffett stated, “I had very, very, very high opinion of Jeff’s ability when I first met him, and I underestimated him.” He has also referred to Bezos as “the most remarkable business person of our age,” highlighting Amazon’s success in e-commerce and cloud computing. Buffett called himself “an idiot for not buying” the stock sooner.

This history suggests the recent sale may not reflect Buffett’s personal views either. Given the delegation of the original purchase, the sale likely came from the same managers. Todd Combs — who has been linked to other tech investments at Berkshire — resigned from his roles at Berkshire in December to join JPMorgan Chase. As his departure occurred after the fourth quarter’s trades, he could have initiated the Amazon sale before leaving.

Was the Sale a Prescient Call?

So far in 2026, Amazon stock has declined 13%, a drop that accelerated after the company’s Q4 earnings report earlier this month, which showed slower-than-expected growth in some segments amid economic pressures. This performance made the sale appear timely, as Berkshire avoided further losses on the trimmed position.

However, timing alone does not indicate a loss of faith in Amazon’s fundamentals. The stock’s current price — last seen in May 2025 — present a potential entry point rather than a signal to exit.

Amazon maintains core strengths that support its long-term appeal. The company leads in e-commerce, setting industry standards with its vast marketplace and logistics network. Its Amazon Web Services division is the world’s largest cloud provider, reporting an annual run-rate revenue of $142 billion in the latest quarter, with growth accelerating to its fastest pace in three years due to rising demand for AI infrastructure.

Amazon’s revenue streams are diversified across e-commerce, advertising, and cloud computing, reducing reliance on any single area. The company plans $200 billion in capital expenditures this year, focused on data centers, chips, and AI equipment, aiming to capitalize on immediate monetization opportunities in AI and cloud services.

Analysts project $805 billion in revenue for 2026, with operating margins at 14.4%, and have average price targets of $287 per share, implying 44% upside potential.

Key Takeaway

Just because a renowned investor — even Warren Buffett — buys or sells a stock does not mean you should follow suit. Their decisions may stem from portfolio rebalancing, tax considerations, or specific mandates that differ from your personal strategy. Amazon is a case in point as it remains a solid long-term investment due to its market leadership and growth in cloud and AI. At its current discounted price, you should consider buying the stock rather than selling.

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