Warren Buffett's Successor, Greg Abel, Has Over 35% of Berkshire Hathaway's $359 Billion Portfolio Invested in Just 2 Undeniable Winners
Nearly $127 billion of Berkshire’s invested assets can be traced to two industry leaders.
Greg Abel, Warren Buffett's successor at Berkshire Hathaway, has directed a significant portion of the company's $359 billion investment portfolio towards just two strong performers: Apple and American Express. Together, these two titans make up over 35% of Berkshire's total invested assets, amounting to $126.7 billion. This concentrated approach aligns with the beliefs of both Buffett and Abel, who favor a highly concentrated portfolio.
Apple, now valued at a trailing 12-month price-to-earnings ratio of 38, has been a major focus for both Buffett and Abel. Buffett initially purchased Apple stock in 2016 when it had a P/E ratio of 10 to 15, and has since sold off a significant portion of his stake, despite the company's premium valuation. However, Abel remains confident in Apple's long-term growth potential, particularly with its shift towards higher-margin subscription services and the integration of Apple Intelligence into its physical devices.
American Express, Berkshire's second-largest position, has been a continuous holding since 1991. This credit-services provider brings three key strengths to Berkshire's portfolio: generating revenue from both sides of the transaction, attracting affluent clientele, and offering a substantial yield relative to cost. With an annual yield on cost of nearly 45%, Amex's dividend income more than doubles Berkshire's initial investment every 27 months.
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