In his inaugural letter to shareholders as CEO, Greg Abel signaled a potential shift in Berkshire Hathaway Inc.'s (NYSE:BRK) (NYSE:BRK) equity strategy by not mentioning two of the firm's largest holdings from his list of “core” investments.
The ‘Core Four’ Vs. The Missing Giants
Abel's letter emphasized a “concentrated approach” toward businesses Berkshire intends to hold for decades.
While Apple Inc. (NASDAQ:AAPL), American Express Co. (NYSE:AXP), Coca-Cola Co. (NYSE:KO), and Moody's Corp. (NYSE:MCO) were solidified as forever stocks.
Bank of America Corp. (NYSE:BAC) and Chevron Corp. (NYSE:CVX) were notably absent from this designation despite being top-five holdings by market value, as per its fourth-quarter 13F filing.
This omission also aligns with a 9% reduction in the Bank of America stake during the final quarter of 2025. While the Chevron position was increased by 7% in that same period.
Stewardship And Performance Gaps
The transition to Abel's leadership also brought a blunt assessment of underperforming assets. Abel described the investment in Kraft Heinz Co. (NASDAQ:KHC) as “disappointing,” noting that returns have been “well short of adequate.”
Despite this, Berkshire has supported a pivot toward operational recovery rather than a previously discussed breakup of the food giant.
New Era Of Leadership
As Berkshire moves past the Warren Buffett era, Abel is reinforcing a culture of “stewardship” and decentralized autonomy.
While his compensation has jumped to a $25 million base salary—a sharp contrast to Buffett's long-standing $100,000—his focus remains on “fortress-like” financial strength, with cash holdings now exceeding $370 billion.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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