Greg Abel moved swiftly to reshape Berkshire Hathaway's equity portfolio in his first quarter as CEO, succeeding Warren Buffett, who officially stepped down on January 1, 2026. Abel, who previously oversaw Berkshire's non-insurance businesses and was named Buffett's designated successor in 2021, liquidated 15 full stock positions — some of which Buffett had held for more than 15 years — marking a decisive shift in the conglomerate's investment strategy.

Positions Eliminated

The divestments included several notable names that had been among Berkshire's stronger performers: Visa, Mastercard, and Amazon. Buffett had historically praised payment networks like Visa and Mastercard for their capital-efficient, tollbooth-like business models, making those exits a notable departure from one of his most consistent investment themes. Abel also exited positions in pool equipment supplier Pool Corp, UK-based spirits company Diageo, and Domino's Pizza.

A number of the sold holdings were higher-yielding dividend stocks. At the time of sale, Lamar Advertising yielded 4%, Diageo 3.8%, and Pool Corp 2.5%. The pattern suggests Abel may place less emphasis on dividend income than his predecessor. Buffett, by contrast, famously held Coca-Cola for decades — a position acquired for roughly $1.3 billion that now generates approximately $1.7 billion in dividends every two years.

New Investments and Growing Cash Reserves

Abel's largest new acquisition was Alphabet, the parent company of Google, which pays a dividend of just 0.2%. His second-largest purchase was Delta Air Lines, which yields approximately 1%. Neither position signals a focus on income generation. The Alphabet purchase also marks Berkshire's first significant stake in the company, adding exposure to digital advertising and cloud computing — sectors where the conglomerate previously had limited direct investment.

Berkshire's cash position continued to expand during the quarter, climbing from $373.3 billion to $397.4 billion. The increase indicates Abel is prioritizing reserve accumulation over rapid capital deployment. Some analysts interpret the growing cash pile as preparation for a potential large-scale acquisition, while others view it as a cautious stance toward an elevated stock market.

Market Performance and Investor Response

Berkshire Hathaway shares responded positively to Abel's early decisions, recently reaching their highest level since Buffett announced his retirement in May 2025. The stock gained 3.7% over the past month, partly driven by investors rotating out of technology stocks and into more stable, established businesses.

Berkshire operates a diversified suite of well-known businesses, including GEICO, BNSF railroad, utilities, and industrial manufacturing operations.

Despite the recent advance, Berkshire shares are up only 4% year-to-date in 2026, compared to a 12.6% gain for the S&P 500 over the same period. The performance gap underscores the transition under way: Abel inherits a company whose identity has been inseparable from Buffett's stock-picking reputation, and whose next chapter will be defined by how he deploys one of the largest cash reserves ever assembled by a public company.

Buffett remains chairman of Berkshire's board and attended the company's most recent annual meeting as an audience member, seated in the front row in a visible show of support for Abel's leadership. Investors and analysts described Abel's debut at the meeting as operationally sound, though notably different in style from Buffett's well-known approach.