Warren Buffett's Successor, Greg Abel, Has 71% of Berkshire Hathaway's $362 Billion Portfolio Invested in 7 Standout Stocks
Berkshire’s new boss is overseeing a concentrated portfolio, with $255 billion invested across seven proven winners.
In the wake of Warren Buffett's retirement as CEO of Berkshire Hathaway, Greg Abel now manages the closely watched $362 billion investment portfolio. Despite some portfolio adjustments, such as selling 16 non-core positions in the first quarter, one principle has remained unchanged: portfolio concentration. Of the $362 billion portfolio, seven standout stocks account for nearly 71%, with $255.2 billion invested.
Several of Buffett's legacy holdings continue to be major pillars of the portfolio, including American Express, Coca-Cola, and Bank of America. Coca-Cola and Amex, both longtime holdings since 1988 and 1991, respectively, boast impressive yields of 65% and 45% relative to Berkshire's cost basis. Bank of America, while not guaranteed to remain under Abel's leadership, shows promise in a rising interest-rate environment due to its share price premium to book value.
Apple, although sold off by Buffett, remains the portfolio's No. 1 holding by market value, praised for its innovative capacity and potential as a multidecade compounder. Abel's new favorite holding is Google's parent Alphabet, with Google Cloud now growing at an impressive 103% year-over-year. This growth is attributed to the integration of artificial intelligence (AI) solutions within Google Cloud, which more than doubled sales in the latest quarter.
Lastly, energy companies Chevron and Occidental Petroleum collectively represent over 10% of Berkshire Hathaway's invested assets, with Abel's background in energy providing valuable insights.
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