Berkshire Hathaway's latest quarterly filing offers the first comprehensive look at its U.S.-listed equity portfolio under the leadership of Greg Abel, who took over as CEO from Warren Buffett earlier this year. The document, a Form 13F filed with the Securities and Exchange Commission, shows several notable shifts that signal a potential change in the conglomerate's investment strategy.
Key Portfolio Changes
The most striking move was a massive increase in Berkshire's position in Alphabet Inc. (GOOGL). The firm nearly tripled its stake, holding approximately 58 million shares valued at around $17 billion as of March 31. This is a significant jump from the 17.8 million shares worth $5.6 billion reported just three months earlier. This increased exposure brings Alphabet closer to Berkshire's core holdings, such as Apple Inc. (AAPL), and moves it away from the smaller, experimental positions the company sometimes holds.
In another surprising development, Berkshire initiated a new stake in Delta Air Lines (DAL), purchasing 39.8 million shares representing a 6.1% ownership. This move marks a reversal from six years ago, when Buffett sold out of all airline holdings, including Delta, near the start of the COVID-19 pandemic. The decision to re-enter the sector, which is currently facing headwinds from fuel prices and fluctuating travel demand, has drawn considerable attention.
On the selling side, Berkshire completely exited positions in Amazon.com (AMZN), UnitedHealth Group (UNH), Visa Inc. (V), Mastercard Inc. (MA), and several other smaller holdings. The company also reduced its stake in Chevron Corporation (CVX) by 35%, though it remains among Berkshire's top holdings. Other names dropped from the portfolio include Domino's Pizza (DPZ), Aon plc (AON), and Pool Corporation (POOL).
Abel's Early Impact
This filing covers Abel's first full quarter as CEO, following Buffett's decision to step back from day-to-day operations. While Buffett remains chairman, the market is keenly observing any changes in Berkshire's capital allocation strategy. Morningstar senior equity analyst Greggory Warren noted that Berkshire moved to cut its portfolio "more quickly than we expected" after Abel took charge. The firm estimates net stock sales for the quarter at $8.1 billion, with $24.1 billion in sales and $16.0 billion in purchases.
Despite these changes, Berkshire's core holdings remain largely intact. The top five U.S.-listed positions continue to be Apple, American Express (AXP), Coca-Cola (KO), Bank of America (BAC), and Chevron. The company's overall 13F portfolio value dipped to $263.1 billion from $274.2 billion at the end of December, and the number of line items decreased to 90 from 110.
Context and Implications
The filing also revealed a smaller new position in Macy's Inc. (M), with about 3 million shares worth $55 million. This adds another turnaround play to the quarter, though the department store chain remains in a challenging retail environment.
At Berkshire's annual meeting earlier this month, Abel assured investors not to expect drastic changes, stating, "We want Berkshire to endure." Buffett echoed this sentiment, adding, "Greg is doing everything I did and then some." The company reported operating profit of $11.35 billion for the first quarter and a record cash pile of $380.2 billion, giving Abel significant flexibility but also increasing pressure to deploy capital effectively.
It is important to note that the 13F filing is a snapshot of holdings as of March 31 and may not reflect the current portfolio. Additionally, it does not specify which individual—Abel, Buffett, or portfolio manager Ted Weschler—made each trade. As Berkshire's Class B shares traded at $483.62 ahead of the U.S. open, down 0.6%, investors are now questioning whether Abel is rapidly unwinding Buffett's traditional strategy to imprint his own vision on the next decade.
