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Berkshire Hathaway (NYSE:BRK.A) recorded its first quarter of portfolio decisions under new CEO Greg Abel.
The company exited positions in Amazon, Visa, Mastercard, and UnitedHealth while sharply reducing the overall number of holdings.
Berkshire returned to airline stocks with a new stake in Delta Air Lines and added exposure to Macy’s, while reallocating more capital to Alphabet.
Berkshire Hathaway enters this new phase with NYSE:BRK.A recently trading around $723,821.0 per share. Over the past 3 years the stock is up 42.7% and over 5 years it is up 67.4%, giving investors a long track record to weigh against the latest reshuffle under Abel.
For shareholders, the shift toward Alphabet and a renewed position in Delta Air Lines sits alongside complete exits from long held positions in Amazon, Visa, Mastercard, and UnitedHealth. These moves provide additional data points to assess how Berkshire might be positioning its large equity portfolio under new leadership, while keeping the company’s long term, concentrated style in mind.
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The first quarter under Greg Abel gives investors fresh information about how Berkshire Hathaway may be run in practice. Cutting the 13F portfolio from around US$274b to US$263b and reducing holdings from 40 to 26 signals a preference for a more concentrated set of ideas. Exits from Amazon, Visa, Mastercard and UnitedHealth, alongside a large cut to Chevron and a 225% increase in Alphabet, indicate a tilt away from certain U.S. financial and healthcare exposures and toward large platform technology and a smaller group of high conviction positions. The return to airline stocks through a US$2.65b stake in Delta Air Lines, plus added exposure to Macy’s and The New York Times, also shows a willingness to re-enter sectors Berkshire previously exited, while maintaining a large cash buffer of roughly US$397b and resuming buybacks of about US$234m. For shareholders, the signal is a mix of continuity in capital discipline and a more active reshaping of the equity portfolio as Abel puts his own stamp on Berkshire’s listed investments.
The Risks and Rewards Investors Should Consider
⚠️ Analysts expect Berkshire’s earnings to decline by an average of 2.4% per year over the next 3 years, so a more concentrated portfolio could magnify the impact if a few large positions underperform.
⚠️ Re-entering airlines via Delta introduces exposure to a sector that can be sensitive to economic cycles and fuel costs, which may add volatility on top of existing holdings in areas like energy and financials.
🎁 Trading at roughly 37% below Simply Wall St’s estimate of fair value, Berkshire is viewed by that model as offering a valuation cushion while management reshapes the portfolio.
🎁 A record cash reserve near US$397b, ongoing buybacks and insider buying from Greg Abel provide flexibility for future opportunities and signal internal confidence in the business.
