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Key Takeaways
- In his debut quarter as CEO, Greg Abel exited 15 complete stock holdings at Berkshire Hathaway
- Exited positions feature Visa, Mastercard, Amazon, Diageo, and Domino’s Pizza
- Alphabet became Abel’s top purchase, with Delta Air Lines second—both offering minimal dividends
- Cash reserves expanded from $373.3 billion to $397.4 billion during the first quarter of 2026
- Shares reached their peak value since Buffett’s retirement announcement, climbing 3.7% over the last month
Greg Abel moved quickly to reshape Berkshire Hathaway’s investment portfolio after assuming the CEO role from Warren Buffett on January 1, 2026.
During his opening quarter at the helm, Abel eliminated 15 complete holdings that Buffett had accumulated over the years, including some maintained for more than 15 years. These decisions mark a distinct departure in portfolio management philosophy for the conglomerate.
The Exit Strategy
Abel’s divestment list features prominent corporations. He eliminated Berkshire’s positions in Visa, Mastercard, and Amazon, all of which had delivered solid returns.
The new CEO also liquidated underperforming holdings, such as Pool Corp specializing in pool supplies, British beverage giant Diageo, and pizza retailer Domino’s Pizza.
Many divested holdings offered substantial dividend yields. Lamar Advertising provided 4%, Diageo delivered 3.8%, and Pool Corp offered 2.5% when sold.
These exits indicate Abel places lower priority on dividend-generating investments compared to his predecessor. Buffett was renowned for maintaining Coca-Cola shares for decades, now earning approximately $1.7 billion in dividends every two years from an initial investment of roughly $1.3 billion.
Abel’s New Investment Direction
Abel’s primary new position targets Alphabet, which owns Google. Alphabet currently offers merely a 0.2% dividend yield.
His runner-up acquisition was Delta Air Lines, providing approximately 1% yield. These selections don’t indicate a focus on dividend income.
Berkshire’s cash holdings expanded throughout the quarter, climbing from $373.3 billion to $397.4 billion. This accumulation suggests Abel is stockpiling resources instead of aggressively investing capital.
Market observers speculate the expanding cash reserves might signal preparation for a major acquisition. Others interpret it as prudence amid elevated stock valuations.
Market Response
Berkshire shares have climbed following Abel’s initial strategic decisions. The stock recently achieved its highest valuation since Buffett’s retirement announcement in May 2025.
Share prices advanced 3.7% during the previous month. This uptick occurred partially as market participants shifted from technology stocks toward more dependable enterprises.
Berkshire’s portfolio encompasses recognized subsidiaries including GEICO insurance, BNSF railroad operations, energy utilities, and manufacturing divisions.
Despite recent gains, Berkshire shares have advanced just 4% year-to-date in 2026. By comparison, the S&P 500 has posted 12.6% returns during the identical timeframe.
Buffett formally transitioned from CEO on January 1, 2026, while retaining his position as board chairman. At the latest shareholder meeting, he attended as a spectator, demonstrating visible endorsement of Abel’s direction from the front row.
Market participants and commentators characterized Abel’s inaugural annual meeting performance as operationally competent, albeit stylistically distinct from Buffett’s celebrated presentation approach.
The post Berkshire Hathaway’s New CEO Exits Visa, Amazon, and Mastercard—Here’s His New Strategy appeared first on Blockonomi.
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