Berkshire Hathaway Announces New “Forever” Holdings Under Greg Abel
On January 1, 2024, Greg Abel took over as CEO of Berkshire Hathaway (NYSE: BRKA, BRKB) following Warren Buffett’s retirement. In his first letter to shareholders, Abel added two existing investments to the company’s list of “forever” holdings: Moody’s, which has a remarkable annual yield of 41%, and Apple, despite Buffett selling 75% of Berkshire’s Apple shares before retiring. Berkshire’s investment portfolio is valued at approximately $319 billion.
Moody’s has been a long-standing investment for Berkshire since 2000, with a cost basis of about $10.05 per share, yielding $4.12 annually. Meanwhile, Apple’s current price-to-earnings ratio stands at 33.4, significantly higher than when Buffett initially bought in at a P/E ratio of 10-15. Abel’s endorsement suggests he sees potential in Apple despite previous sell-offs, indicating a possible shift in Berkshire’s investment strategy.
