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Is Berkshire Hathaway Riskier After Buffett's Exit?
27 Oct
Summary
- Greg Abel now leads Berkshire Hathaway, succeeding Warren Buffett.
- Berkshire Hathaway has recently invested in tech stocks like Alphabet.
- Investors are advised to adopt a wait-and-see approach for now.
Greg Abel assumed the role of CEO at Berkshire Hathaway this year, stepping into the position previously held by Warren Buffett. Under Abel's leadership, the company's stock has shown resilience, with a notable increase of around 9% year-to-date. Buffett has also reduced his direct involvement, stepping down as chairman, with his son Howard taking over to uphold company values.
Recent investment activity indicates Berkshire Hathaway may be increasing its exposure to technology stocks, a departure from its traditional portfolio. The company has bolstered its stake in Alphabet and made a notable investment in Bending Spoons, a tech firm known for acquisitions. This shift suggests a potential for higher risk and volatility within Berkshire's holdings.
Given these changes, including Abel's lack of experience managing a portfolio of Berkshire's magnitude and the increasing tech allocation, a cautious approach is recommended for investors. It remains to be seen how Berkshire's portfolio will evolve under new leadership, prompting a wait-and-see stance.
