Berkshire Hathaway's latest portfolio update reveals a clear and deliberate strategy under the new leadership of CEO Greg Abel.
With a record cash pile of nearly $400 billion, many wondered if Berkshire would go on a spending spree. Instead, the recent 13-F filing shows a highly selective approach. Abel is not just buying indiscriminately; he is making concentrated, high-conviction bets while carefully managing risk. This disciplined deployment of capital is the guiding principle behind the significant changes we're seeing.
First, the portfolio shows a clear move to de-risk from sectors facing policy and regulatory headwinds. The complete exit from payment giants Visa and Mastercard is the most prominent example. This decision is directly linked to the reintroduction of the 'Credit Card Competition Act' (CCCA) in the U.S. Congress, which threatens the fee structures of these networks. Rather than wait and see, Berkshire chose to eliminate this policy uncertainty from its books. Similarly, the sale of UnitedHealth follows a period of intense scrutiny over its billing practices and the costly fallout from a major cyberattack, making it a source of headline risk.
Second, Berkshire is leaning back into cyclical stocks, which are sensitive to economic ups and downs. The new $2.65 billion stake in Delta Air Lines is a major reversal from Berkshire's 2020 exit from the airline industry. This move was prompted by Delta's strong financial results, including record revenue and positive cash flow, which signaled improved earnings visibility. The company also increased its investment in homebuilder Lennar, likely encouraged by stabilizing mortgage rates that support the housing market.
Third, Berkshire is building a second massive technology pillar alongside Apple. The company significantly increased its stake in Alphabet (Google's parent company), making it a core holding. This move, which began in late 2025, signals a long-term strategic reweighting towards dominant consumer-tech franchises with durable business models.
Finally, the trimming of positions like Chevron reflects prudent portfolio management. After a massive rally in oil prices, reducing the stake allows Berkshire to lock in some gains and lower its exposure to commodity price volatility. In essence, these changes paint a picture of a more focused, policy-aware Berkshire Hathaway under Greg Abel, one that pivots decisively toward perceived opportunities while sidestepping potential troubles.
- 13-F Filing: A quarterly report required by the U.S. Securities and Exchange Commission (SEC) for institutional investment managers with over $100 million in assets under management, disclosing their public equity holdings.
- Cyclical Stocks: Stocks of companies whose profits are strongly correlated with the overall state of the economy. They tend to perform well during economic expansions and poorly during contractions.
- Credit Card Competition Act (CCCA): Proposed U.S. legislation aimed at increasing competition among credit card networks, which could potentially lower the fees charged to merchants and impact the profitability of companies like Visa and Mastercard.