Berkshire Hathaway CEO Greg Abel Is in Clean-Up Mode: 2 Brilliant Stocks He Just Sold

In his first letter to shareholders as CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), Greg Abel emphasized that the company's culture and values would remain unchanged. This was music to the ears of investors who feared that once Warren Buffett stepped down, things would change drastically. However, although Abel is following in the footsteps of the Oracle of Omaha, he is still shaking things up somewhat. During the first quarter of his tenure as CEO of Berkshire Hathaway, Abel got rid of several stocks from the Buffett era, including one that had been in the conglomerate's portfolio for over a decade. Let's consider two of the stocks Abel dumped and whether investors should do the same.

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1. Visa

Berkshire Hathaway first bought Visa's (NYSE: V) shares in 2011. As of the end of the first quarter, the conglomerate has gotten rid of every last one. Visa has been a great stock to own since 2011, a period during which it has crushed the broader market. So, why did Abel and his team decide it was time to call it quits? One popular theory is that Abel is eliminating the positions formerly managed by Todd Combs, who left the company at the end of last year. Visa was one of them, so Visa had to go.

However, this doesn't mean individual investors should forget about Visa. True, the company has encountered challenges in recent years. Visa's shares have underperformed broader equities of late due to several factors, including an antitrust lawsuit filed by the U.S. Department of Justice.

But Visa is a resilient company, and the financial services specialist demonstrated that with its latest quarterly update. During the second quarter of its fiscal year 2026, ending on March 31, Visa's revenue grew by a healthy 17% year over year to $11.2 billion. The company's earnings per share jumped 36% to $3.14.

Visa is also a particularly attractive stock to consider in the current environment. While many businesses will be harmed by inflation, rising prices can be a boost to Visa, since it earns fees on every transaction it facilitates through its payment network. Higher prices mean a higher fee per transaction. Visa has generally performed well in inflationary periods.

Lastly, the company has terrific long-term prospects -- it sees a total addressable market worth trillions -- and a terrific dividend track record. Given all these factors, Visa remains a top pick for long-term investors, even though it is no longer part of Berkshire Hathaway's portfolio.

2. Amazon

Berkshire Hathaway probably got rid of its Amazon (NASDAQ: AMZN) stake for the same reason it sold all its Visa shares. However, the e-commerce specialist still has an attractive outlook. Amazon is implementing initiatives that could boost revenue while reducing expenses and increasing margins. Within its e-commerce division -- which still accounts for the largest percentage of its sales -- Amazon is increasingly relying on artificial intelligence (AI)-powered robots, which, it hopes, will help increase productivity and cut expenses. If it can make even small improvements, that could have a meaningful impact on its bottom line.

Meanwhile, Amazon's growth within its cloud division, Amazon Web Services (AWS), has been accelerating. There is growing demand for the company's AI services, and it is spending a small fortune to pounce on these opportunities. Notably, Amazon is increasingly relying on internally designed chips for its data centers, rather than buying them from external suppliers. CEO Andy Jassy expects this will help improve operating margins in the company's cloud division, as some of Amazon's chips, such as Trainium, offer better price performance than comparable GPUs (Graphics Processing Units).

Amazon also continues to scale its advertising business, another high-margin opportunity. And the company recently launched Amazon Supply Chain Services (ASCS), through which it will allow other companies to use its massive logistics network to boost fast-shipping capabilities. Amazon's business is performing well, and the company has multiple long-term growth paths to explore. Even at a $2.8 trillion market cap, the stock remains a buy.

Prosper Junior Bakiny has positions in Amazon, Berkshire Hathaway, and Visa. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, and Visa. The Motley Fool has a disclosure policy.