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Abel era begins: Berkshire shifts to tech and airlines
16 May
Summary
- Berkshire tripled Alphabet stake, investing billions.
- New CEO Greg Abel acquired over $2.6 billion in Delta.
- Company divested from Visa, Mastercard, and Amazon.
Berkshire Hathaway, under the new leadership of CEO Greg Abel, has dramatically increased its investments in technology and airlines during the first quarter. This strategic pivot saw the company more than triple its stake in Alphabet, raising its holdings to nearly 58 million shares valued at approximately $17 billion by the end of March. This marks a significant expansion into the technology sector.
Furthermore, Berkshire Hathaway acquired over $2.6 billion worth of shares in Delta Air Lines. This move into the airline sector comes as Abel formally assumed the CEO role from Warren Buffett at the start of the year. The company also reduced or exited several other investments, including significant holdings in Visa, Mastercard, Domino's Pizza, Amazon, and UnitedHealth Group.
These investment decisions are being closely watched by the market, as investors historically followed Buffett's portfolio closely. Abel, who previously managed operating companies, is now steering Berkshire's vast portfolio. Warren Buffett, still serving as chairman, has expressed confidence in Abel's leadership, noting that Abel is performing all his duties and more.
