TLDR
- Q1 2026 saw Berkshire purchase $16B while divesting $24B in equities, marking unprecedented portfolio activity
- Greg Abel, the new chief executive, liquidated 16 complete positions including Amazon, Visa, Mastercard, and UnitedHealth Group
- Alphabet holdings surged to 58 million shares from previous levels, creating a ~$23B position among the top five investments
- The portfolio restructuring coincides with Todd Combs’ departure to JPMorgan Chase following his December exit
- Warren Buffett appears to have made a modest personal investment in Macy’s, acquiring approximately 1% for ~$55M
Greg Abel’s inaugural quarter as Berkshire Hathaway’s chief executive witnessed extraordinary portfolio activity. The conglomerate acquired $16 billion worth of equities while simultaneously divesting $24 billion during Q1 2026, maintaining an equity portfolio valuation exceeding $300 billion.
Abel assumed the CEO position on January 1, 2026, following Warren Buffett’s retirement from day-to-day operations. Buffett continues serving as chairman and maintains involvement in major investment choices.
The standout transaction involved dramatically expanding Berkshire’s Alphabet exposure. The firm increased its position from 18 million shares to 58 million shares, elevating it to Berkshire’s fifth-largest equity holding at approximately $23 billion. Alphabet stock has climbed 25% year-to-date.
Alphabet commands between 89% and 93% of worldwide internet search traffic throughout the previous decade. The company’s cloud computing segment, Google Cloud, has experienced rapid expansion, posting 63% revenue growth year-over-year with cloud profit margins reaching 33%.
The Rationale Behind Berkshire’s Massive Stock Liquidation
Abel orchestrated complete liquidations of 16 portfolio positions throughout the quarter. Notable exits included Amazon, Visa, Mastercard, Domino’s Pizza, UnitedHealth Group, Constellation Brands, Aon, and Pool, alongside several others.
A substantial portion of these divestitures correlates with Todd Combs’ departure. The veteran Berkshire investment manager departed in December to assume responsibilities at JPMorgan Chase. According to Barron’s analysis, the liquidated Combs-managed positions represented approximately $14 billion, constituting roughly 5% of his supervised portfolio.
Certain market observers have questioned the wisdom of disposing these holdings, emphasizing that enterprises like Visa and Mastercard represent high-quality businesses with favorable long-term prospects. Alternative viewpoints suggest maintaining positions without their original portfolio manager lacks strategic merit.
The comprehensive $24 billion divestiture generated approximately $2 billion in quarterly tax obligations.
Berkshire’s Market Perspective and Current Portfolio Composition
Berkshire has maintained net selling activity for 14 straight quarters, accumulating approximately $195 billion in aggregate net sales. The Buffett Indicator, measuring aggregate market capitalization against GDP, recently touched a historic 235%, substantially above its historical 88% average.
Ted Weschler, Berkshire’s remaining investment manager, currently oversees roughly 6% of the portfolio. His probable holdings encompass Davita, Sirius XM, Kroger, and Capital One. The fresh $3 billion Delta Air Lines position is widely believed to represent a Weschler selection, aligning with his expanded investment authority granted this year.
Berkshire additionally established a modest position in Macy’s, acquiring three million shares valued at approximately $55 million. During a March 31 CNBC appearance, Buffett alluded to having executed “one tiny purchase,” potentially referencing the Macy’s transaction. The retailer’s substantial real estate assets may represent the primary attraction.
Berkshire’s cash reserves currently total $380 billion.
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