Warren Buffett's Successor, Greg Abel, Has 63% of Berkshire Hathaway's $355 Billion Portfolio Invested in Just 5 Standout Stocks
Key Points
Portfolio concentration plays an important role in Greg Abel's investment strategy.
Indefinite holdings aren't going anywhere, with a couple of Berkshire's most tenured positions now among its largest.
Meanwhile, tech stocks are firmly on the menu with Abel now in charge.
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This year has represented a historic shift for the trillion-dollar company that Warren Buffett helped build. Following the Oracle of Omaha's retirement as Berkshire Hathaway's (NYSE: BRKA)(NYSE: BRKB) CEO on Dec. 31, 2025, Greg Abel took over the company's day-to-day operations. This includes overseeing its $355 billion investment portfolio.
Abel didn't waste any time overhauling Berkshire's portfolio. He sent 16 stocks packing in the March-ended quarter and reduced six other positions.
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Warren Buffett retired as Berkshire's CEO on Dec. 31, 2025. Image source: The Motley Fool.
But one trait that Abel and his predecessor share is portfolio concentration. Abel, like Buffett, favors concentrating Berkshire Hathaway's investment capital into a handful of "best ideas." Based on Aug. 5 closing values, 63% ($222.3 billion) of the portfolio that Warren Buffett's successor oversees is invested in just five standout stocks:
- Apple (NASDAQ: AAPL): $70.88 billion (20% of invested assets)
- American Express (NYSE: AXP): $52.91 billion (14.9%)
- Coca-Cola (NYSE: KO): $34.73 billion (9.8%)
- Bank of America (NYSE: BAC): $32.49 billion (9.1%)
- Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG): $31.28 billion (8.8%, both classes combined)
Leaning on legacy holdings
The first thing to note about Abel's portfolio is that it's packed with legacy positions.
Credit-services provider American Express and beverage behemoth Coca-Cola have been continuous holdings since 1991 and 1988, respectively. Thanks to their low cost bases, Amex and Coca-Cola are generating annual yields on cost of 45% and 65%. There's simply no reason for Abel to sell these highly profitable positions.
In Warren Buffett's 2023 annual letter to shareholders, he described some of his company's holdings as "indefinite." Coca-Cola and Amex were two of the companies the Oracle of Omaha singled out, along with Occidental Petroleum and the five Japanese trading houses.
Image source: Getty Images.
Tech is suddenly on the menu
Arguably, the biggest difference between Buffett and Abel is that tech stocks are decidedly on the menu with Berkshire Hathaway's new boss.
Although Buffett began buying Apple in early 2016, and he admitted in a recent interview with CNBC's Becky Quick that he initiated Berkshire's position in Alphabet, tech stocks have never been his forte. Buffett often viewed Apple as a consumer goods company and valued its loyal customer base, exemplary management team, and market-leading share buyback program.
It's clear that Greg Abel is positioning Berkshire to take advantage of a technology-driven future. But what he won't sacrifice is the desire to get a good deal. Buffett was always a stickler for value, and that hasn't changed with Berkshire's new boss.
Alphabet may be to Abel what Apple was to Warren Buffett.
Bank of America may be expendable
Although Bank of America remains one of Berkshire's largest holdings, it's not a stock that Abel or Buffett has referred to as an indefinite or core holding. In fact, Buffett and Abel have reduced this position by 50% (about 519.23 million shares) since the midpoint of 2024.
BofA may be expendable for two reasons. To start with, it's no longer the screaming bargain it once was. When Buffett purchased BofA preferred stock in the summer of 2011, its common stock was trading at a 62% discount to book value. Today, BofA trades at a 61% premium to book value.
Furthermore, Bank of America is the most interest-sensitive of the big banks. The Federal Reserve's rate-easing cycle from September 2024 to December 2025 arguably hurt BofA more than any other big bank. Don't be surprised if Abel continues to pare down this position.
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Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Sean Williams has positions in Alphabet and Bank of America. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
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