Warren Buffett's Berkshire Hathaway Bought This Dividend Stock for a Reason. Here's Why Greg Abel Won't Sell.
Key PointsAbel has hit the ground running since becoming Berkshire Hathaway CEO, directing big changes to the company's equity portfolio.
Since assuming the role of CEO at Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) earlier this year, Greg Abel has been busy making significant investments. He boosted Berkshire's stake in Alphabet by $17 billion and acquired homebuilder Taylor Morrison for $8.5 billion. Abel has also sold several stocks from Berkshire's equity portfolio, notably Mastercard, Visa, and UnitedHealth Group.
However, he will likely maintain Berkshire's 9.3% stake in Coca-Cola (NYSE: KO), a $35.5 billion position representing nearly 10% of the company's overall stock portfolio. This long-standing investment, often associated with Warren Buffett, is not set to be sold by Abel. His decision is based on economic reasoning rather than sentiment.
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