How Greg Abel Is Already Reshaping Berkshire Hathaway's Playbook

Warren Buffett is a tough act to follow. He is arguably the greatest investor of his time, transforming Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) into a massive holding company with almost 200 subsidiaries and a $330 billion equity portfolio, and he has trounced the S&P 500 over time.

However, Greg Abel, Buffett's handpicked successor, made his mark on the company in the first quarter of 2026, his first as CEO. Here's what it looks like, and how it could change the company's trajectory.

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Out with the old

In his first annual shareholder letter as CEO, Abel committed to upholding the values that shaped Berkshire Hathaway over the 60 years Buffett ran it. He said that "Berkshire's culture and values remain unchanged and will continue into perpetuity," and he specified the commitment to allocating capital efficiently with a business underpinned by a robust insurance operation. He echoed Buffett's maxim that the company's job is to be "exceptional stewards of our shareholders' capital."

He laid out the principles behind his investing strategy, which include:

• Investing in companies that Berkshire understands and that have durable, long-term economic moats.
• Choosing partners with integrity who understand their own customers.
• Avoiding companies that could tarnish Berkshire's reputation and aren't good for society.
• Acting quickly and concentrating the portfolio in a few, high-conviction stocks.
• Staying disciplined.

In the company's equity positions, Abel followed these principles when he made his moves. Most noticeable was the immediate termination of most of its smaller positions, followed by a dive straight into the fourth principle to consolidate the portfolio into fewer high-conviction positions. The equity portfolio went from 42 to 29 positions, the lowest number in more than a decade.

In with the new

Abel also expanded the company's position in Alphabet, which is a rare tech stock in the portfolio. One of the stocks closed out was Amazon, so Berkshire remains with two artificial intelligence (AI) stocks, the other being perennial Buffett favorite Apple. Apple can be viewed as a consumer goods company, but Alphabet is more of a pure-play tech stock.

While the portfolio is still highly invested in consumer goods and financial stocks, and the new positions in Macy's and Delta Air Lines are classic Buffett-style stocks, it could signal that Abel feels more comfortable understanding Alphabet and its role in the economy. As the shift to digital and AI continues at a rapid pace, it appears that Abel is willing to invest in it.

Jennifer Saibil has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Berkshire Hathaway. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.