Berkshire Hathaway’s formidable equity portfolio underwent one of its most extensive transformations in recent history during the first quarter of 2026, marking a clear divergence and strategic reorientation under the nascent leadership of Greg Abel, who assumed the role of CEO. A newly disclosed SEC filing, made public on May 15, 2026, reveals a series of bold investment decisions, including substantial new positions and dramatic divestitures, painting a picture of an evolving investment philosophy at the venerable conglomerate. These moves, executed within Abel’s initial three months at the helm, suggest a decisive hand in shaping Berkshire’s future investment landscape, even as the shadow of Warren Buffett, the company’s long-reigning investment maestro, continues to loom. The changes signal a pragmatic approach that blends elements of traditional value investing with an openness to modern growth sectors, setting a potential new trajectory for one of the world’s most influential investment vehicles.
A New Era: Greg Abel’s Strategic Imprint on Berkshire’s Portfolio
The first quarter of 2026 offers the most comprehensive glimpse yet into Greg Abel’s strategic vision for Berkshire Hathaway’s investment portfolio. While Warren Buffett remains Chairman and continues to guide overall capital allocation and major decisions, the operational responsibilities, including oversight of the company’s vast investment managers, have increasingly shifted to Abel. This period represents a critical juncture, as Abel begins to stamp his authority on the equity holdings, a domain traditionally synonymous with Buffett’s singular genius. The portfolio shifts indicate a potential broadening of Berkshire’s investment horizons, incorporating companies that align with contemporary economic trends while simultaneously streamlining holdings that may no longer fit the evolving strategic framework.
One of the most striking aspects of the overhaul is the significant increase in existing positions alongside the introduction of new names. Notably, Google parent Alphabet saw its Berkshire stake more than triple, with the company increasing its share count by 224% in the first quarter. This move, given its substantial size and strategic implication, is almost certainly attributed to Abel, potentially with Buffett’s endorsement or even initial suggestion. This substantial commitment to a dominant technology player like Alphabet underscores a potential shift towards acknowledging and capitalizing on the enduring power and growth potential of leading digital enterprises, a sector where Buffett historically maintained a more cautious stance, though not entirely absent. The market’s immediate positive reaction to Alphabet’s stock, rallying 38% since the end of the first quarter, validates the prescience of this significant investment, which now ranks as Berkshire’s seventh-largest equity holding with a market value of $16.6 billion as of the end of the first quarter. This substantial increase in a tech giant, known for its innovation in areas like artificial intelligence, cloud computing, and digital advertising, suggests a willingness to embrace companies with robust competitive advantages ("moats") in modern, rapidly evolving industries.
The Return to the Skies: Delta Air Lines and Buffett’s Complex Legacy
Perhaps the most symbolically significant addition to Berkshire’s portfolio in the first quarter is the re-establishment of a position in Delta Air Lines. Berkshire purchased 39.8 million shares, currently valued at $2.8 billion, marking a surprising return to a sector that Warren Buffett famously and dramatically exited during the early days of the COVID-19 pandemic in 2020. Buffett’s relationship with the airline industry has been notoriously complex, characterized by both initial enthusiasm and profound disillusionment over the decades.
In 2016, Buffett had initiated significant stakes in major U.S. airlines, including Delta, American, Southwest, and United, citing increased industry consolidation and improved pricing power. He articulated his reasoning to CNBC’s Becky Quick in early 2017, humorously stating, "It’s true that the airlines had a bad 20th century. They’re like the Chicago Cubs. And they got that bad century out of the way, I hope." This marked a departure from his long-held skepticism, rooted in a troubled investment in US Airways in 1989 and encapsulated in his oft-quoted remark from his 2007 shareholder letter: "The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down."
Despite his previous rationale for entering the sector in 2016, the unprecedented impact of the COVID-19 pandemic on global travel prompted Buffett to liquidate all airline holdings in 2020, declaring the "world has changed" for the industry. Given this deeply ingrained historical perspective and his decisive exit, it is widely considered improbable that Buffett himself would have spearheaded this latest return to the airline sector. This move strongly suggests Greg Abel’s distinct investment thesis, potentially focusing on the robust post-pandemic recovery of global travel, the strengthening balance sheets of major carriers, and perhaps a belief that the industry has fundamentally restructured to a more profitable long-term outlook. The re-entry into Delta could be seen as a calculated bet on the resurgence of consumer and business travel, coupled with the industry’s sustained ability to manage capacity and pricing effectively in a consolidated market. This decision exemplifies Abel’s readiness to challenge historical precedents and pursue opportunities that he believes offer compelling value, even in sectors traditionally viewed with skepticism by his predecessor.
Streamlining the Portfolio: Divestitures and Managerial Transitions
Accompanying the new investments was a significant culling of existing holdings, leading to a dramatic reduction in the total number of companies in Berkshire’s portfolio. This streamlining effort had been hinted at by The Wall Street Journal last month, suggesting a strategic rationalization. A key factor in these divestitures appears to be the departure of portfolio manager Todd Combs, who moved to JPMorgan in early December of the previous year. Many of the eliminated stocks were likely managed by Combs, and his exit provided an opportune moment for a comprehensive review and realignment of those positions.
Among the most notable divestitures, Berkshire entirely sold its remaining 2.3 million shares of Amazon in the first quarter, completing a phased exit that began with the sale of 7.7 million of its 10 million share stake in the fourth quarter of the previous year. Amazon, a tech giant known for its e-commerce and cloud computing dominance, had been a relatively recent addition to Berkshire’s portfolio, often speculated to be a Combs-managed holding. Its complete liquidation suggests a reallocation of capital away from certain large-cap tech plays, possibly to fund the increased Alphabet position, or simply a re-evaluation of its long-term fit within Berkshire’s concentrated strategy.
Similarly, Constellation Brands, a major player in the alcoholic beverage industry and another stock frequently associated with Todd Combs’s portfolio management, saw an almost complete elimination, with a 95% reduction in Berkshire’s stake. This near-total divestment further supports the theory that Combs’s departure triggered a systematic review and liquidation of positions under his purview. While the company does not publicly identify which manager is responsible for individual names, the timing and nature of these sales align strongly with a managerial transition and a potential consolidation of investment mandates under Abel’s broader oversight.
Crucially, some of Berkshire’s cornerstone holdings, Bank of America and Apple, were largely spared from significant trimming. Bank of America saw a minimal reduction of less than 1%, while Apple’s position remained entirely unchanged. These companies represent significant, long-term investments for Berkshire, reflecting Buffett’s belief in their strong competitive advantages, robust financial health, and consistent performance. Their retention signals continuity in the core of Berkshire’s portfolio, even as the periphery undergoes substantial change, reaffirming the enduring value placed on these established market leaders.
Chevron’s Reduced Footprint: A Reassessment of Energy Holdings
The largest reduction in the first quarter, measured by market value, was in energy giant Chevron. Berkshire Hathaway trimmed its stake by 35%, a block of shares valued at over $8 billion at the end of the first quarter. Despite this significant reduction, the remaining stake in Chevron was still substantial, exceeding $17 billion at the time, underscoring its continued importance within Berkshire’s portfolio. Unlike some of the other divestitures, Chevron is generally not considered to have been a "Combs stock," suggesting this decision was likely made by Abel or even Buffett himself, reflecting a broader strategic reassessment of the energy sector’s role.
Berkshire had significantly built up its position in Chevron in previous quarters, particularly amid geopolitical instability and rising energy prices. The initial investment was seen as a hedge against inflation and a play on the long-term demand for traditional energy sources, reflecting a more value-oriented approach to the energy sector. However, the first quarter saw the stock rising even as Berkshire was selling, a potential indicator of profit-taking or a re-evaluation of its weighting within the overall portfolio. Since the end of Q1, Chevron’s stock has dropped by 7.6%, though it remains up 25.4% year-to-date, buoyed by elevated oil prices, partly due to ongoing conflicts such as the Iran war. The reduction in Chevron could signal a move to diversify away from a concentrated energy bet, or a tactical adjustment to capitalize on recent price appreciation, perhaps reallocating capital to other perceived opportunities or to boost Berkshire’s already massive cash reserves in anticipation of
