Berkshire Hathaway’s Annual Letter Highlights Limited Activity in Major Holdings
In its first annual letter under CEO Greg Abel, Berkshire Hathaway (NYSE: BRKA, BRKB) revealed limited expectations for changes in its largest equity holdings, which include American Express, Coca-Cola, Moody’s, and Apple. Abel’s assessment emphasized a long-term perspective, stating that these companies are expected to “compound over decades.” Notably, Apple’s earnings per share rose 19% year-over-year in fiscal Q1, driven by a services segment boasting a gross profit margin of 75.4%.
With Apple as Berkshire’s largest equity stake, the letter indicated that significant adjustments to core holdings would only occur due to fundamental changes in long-term economic prospects. Apple continues to show steady growth, with a 16% increase in sales year over year, underscoring the strong performance and durability of its business model.
