In his first communication to shareholders, Greg Abel, the newly appointed CEO of Berkshire Hathaway, has established the company”s strategic outlook, emphasizing four key stock investments that the conglomerate plans to retain indefinitely. These holdings include Apple, American Express, Coca-Cola, and Moody”s. Abel”s letter signifies a commitment to uphold Warren Buffett”s value investing approach while navigating the company”s financial landscape.
Abel took over as CEO in 2026, succeeding Buffett, who will continue to serve as chairman and maintain an active role in the company. The letter highlighted these four companies as ones Berkshire “understands well,” praising their management teams and long-term growth potential. He indicated that significant adjustments to these positions would only occur if there are fundamental shifts in their future outlook.
Combined, these four investments, along with stakes in five Japanese trading firms, account for about two-thirds of Berkshire”s entire stock portfolio, with a total market value exceeding $200 billion.
Interestingly, two of Berkshire”s top five holdings—Bank of America and Chevron—were not included in this “forever” list. The position in Bank of America has been reduced by about half over the past 18 months to approximately 517 million shares, valued at nearly $28 billion. Similarly, the Chevron investment, worth around $20 billion, also did not earn the “forever” designation, prompting speculation among industry observers.
Abel noted that Berkshire”s investment in Apple has significantly appreciated since its initial acquisition, with the average cost basis around $27 per share, while the stock currently trades near $264. Despite Buffett”s previous reductions of the Apple stake by roughly 80%, Abel”s letter suggests that no further cuts are planned.
In terms of financial performance, Berkshire reported fourth-quarter operating profits of $10.2 billion, marking a decline of over 29% from the same period the previous year, which recorded $14.56 billion. This decrease is attributed partly to challenges faced in the insurance sector.
For the full calendar year 2025, Berkshire”s operating earnings totaled $44.5 billion, which fell short of the $47.4 billion reported for 2024 but remained above the five-year average of $37.5 billion. The company”s cash and Treasury bill reserves stood at $373.3 billion at the end of the quarter, reflecting a slight decrease from $382 billion in the preceding quarter. Abel referred to this substantial liquidity as “dry powder,” ready to be deployed for forthcoming investment opportunities.
Looking ahead, the management of the portfolio remains a topic of discussion, as Abel lacks extensive investment experience. Investment manager Ted Weschler is set to oversee about 6% of the portfolio, maintaining his allocation from Buffett”s era. Abel emphasized that, while he holds ultimate responsibility as CEO for capital allocation decisions, Buffett will remain available for guidance.
