Berkshire Hathaway’s New Core Positions Under CEO Greg Abel
Greg Abel, the new CEO of Berkshire Hathaway, outlined nine “core positions” in his first shareholder letter, which together represent approximately 60% of the company’s $320 billion portfolio. This strategic shift comes as Abel takes over from Warren Buffett, who continues to provide advisory support.
Among the highlighted investments are significant stakes in Apple (18.5%), American Express (15%), and Coca-Cola (9.8%). Abel’s approach emphasizes strong operational businesses, although not all are currently valued attractively. Apple’s performance and potential for growth are noteworthy, especially after strong sales in Greater China, while American Express shows growth in net interest income, and Coca-Cola maintains steady revenue growth amidst market challenges.
Furthermore, Berkshire has built substantial positions in five Japanese trading houses, increasing ownership beyond 10% in each. These investments have performed well, with notable appreciation over the past year: Mitsubishi and Sumitomo stocks have nearly doubled, while others like Mitsui and Marubeni have risen significantly as well. As Abel consolidates his role, the focus on these core positions may signal new directions for the company’s investment strategy.
