{
  "id": 15586964,
  "title": "Not So Fast! One Warren Buffett's Core Positions at Berkshire Hathaway May Not Get the Heave-Ho by Successor Greg Abel After All.",
  "url": "https://urgent.news/2026/10/19/not-so-fast-one-warren-buffetts-core-positions-at-berkshire-hathaway",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-19T09:06:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/19/one-warren-buffett-core-position-berkshire-hathaway-may-not-get-heave-ho-by-greg-abel/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "The Berkshire Hathaway investment portfolio has undergone significant changes since Warren Buffett stepped down as CEO. His successor, Greg Abel, has already made headlines by divesting 16 stocks in the first quarter, with six of those being core holdings. One of those core holdings was Bank of America (BAC). Despite this, there are now signs that Bank of America may not be on the chopping block.\n\nWarren Buffett and Greg Abel have been known for their preference for value investments. When Buffett first invested in Bank of America's preferred stock in 2011, the company's common stock was trading at a 62% discount to book value. As recently as August of this year, Bank of America's stock even reached a 65% premium to book value.\n\nMoreover, Bank of America is particularly sensitive to interest rates. The Federal Reserve has been lowering rates six times between September 2024 and December 2025, putting significant pressure on large banks like BofA. Greg Abel's first annual letter to shareholders also omitted Bank of America from discussions on companies that could compound over multiple decades.\n\nHowever, recent developments suggest that Bank of America's position at Berkshire Hathaway might not be as precarious as initially thought. The company's ongoing profitability and prudent lending practices have steadily increased its book value per share. Additionally, Bank of America's stock price has pulled back, reducing its premium to book value. The bank is now trading at only a 30% premium to book value.\n\nFurthermore, the Federal Reserve has only just begun its rate-hiking cycle, and according to the CME Group's FedWatch Tool, there is a high likelihood of several rate hikes in the coming year. As the most interest-sensitive large U.S. bank, Bank of America's net interest income is expected to benefit from this. The narrative surrounding Bank of America appears to be evolving, making the likelihood of its removal from Berkshire Hathaway's portfolio less certain.",
  "summary": "One of Berkshire’s largest positions, which has been pared down for eight consecutive quarters, has had a recent change of fortune.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Motley Fool",
        "title": "This Table Explains Exactly Why Warren Buffett and Berkshire Hathaway Have Struggled to Find Stocks to Buy and Where You Can Find Great Value Stocks Right Now",
        "url": "https://urgent.news/2026/10/19/this-table-explains-exactly-why-warren-buffett-and-berkshire-hathaway",
        "published": "2026-10-19T09:12:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}