• Greg Abel has taken over as CEO of Berkshire Hathaway (NYSE:BRK.A) following Warren Buffett's retirement.
• Abel has re-entered the airline sector with a $2.65b stake in Delta Air Lines.
• Berkshire has fully exited positions in Visa, Mastercard, Amazon, UnitedHealth and several other holdings.
• The company has expanded its investment in Alphabet and carried out large net stock sales, leading to record cash reserves.
• Berkshire has resumed stock buybacks for the first time in nearly two years.

Berkshire Hathaway, now led by Greg Abel, is entering a new phase with a different mix of holdings and a large cash position. The stock most recently closed at $723,821.00, with gains of 42.7% over 3 years and 67.4% over 5 years. Over the past year the share price is down 6.1%, while year to date it is down 2.7%, giving investors a mixed recent picture on top of longer term returns.

For shareholders watching this handover from Warren Buffett, the combination of portfolio reshaping, record cash and renewed buybacks is shaping how Berkshire may be run under Abel. The key question now is how consistently this new playbook will be applied and what it could mean for the role of cash, public equities and buybacks in Berkshire's capital allocation.

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Greg Abel’s early decisions give you a clearer picture of how Berkshire might be run without Warren Buffett in the CEO seat. The board’s bylaw changes around officer roles, the streamlined 13F portfolio, and record US$397.38b cash all point to a tighter, more formalized operating structure alongside a more concentrated set of equity bets. Re entering airlines with a US$2.65b Delta stake, increasing Alphabet, and reducing or exiting long held financial positions such as Visa, Mastercard and Bank of America show Abel is willing to reshape the mix of risk and sector exposure rather than simply preserve the prior portfolio. At the same time, Q1 2026 revenue of US$93.68b, net income of US$10.11b, 18% growth in operating earnings and a conservative 19% debt to equity ratio underline that the core engine of insurance, rail and energy is still central to the story. The restart of US$234m of buybacks, alongside Abel’s own US$15m share purchase, indicates that leadership is comfortable allocating capital to Berkshire’s stock when it sees value, while keeping substantial optionality through the large cash and Treasury position.

The Risks and Rewards Investors Should Consider

• ⚠️ Analysts expect Berkshire’s earnings to decline by an average of 2.4% per year over the next 3 years, so Abel’s portfolio reshaping and capital allocation need to work against that backdrop.
• ⚠️ A record US$397.38b cash position can weigh on returns if attractive large scale opportunities remain limited, especially with a greater focus on price to book in an insurance heavy group.
• 🎁 Q1 2026 operating earnings rose 18% year on year, supported by insurance underwriting and BNSF, which contributes to the “durable earnings” role many investors expect from Berkshire compared with more volatile tech heavy peers such as Meta, NVIDIA or Tesla.
• 🎁 Insider buying, including Greg Abel’s US$15m purchase, and the resumption of share buybacks indicate that current leadership is willing to commit capital alongside outside shareholders.

What To Watch Going Forward

From here, focus on how consistent Abel is in applying this new portfolio playbook, including any further exits from long held financials, additions to airlines or industrials, and the pace of deployment of that US$397.38b in cash and Treasuries. Watch how Berkshire’s insurance, railroad and energy earnings trend against the forecast decline in earnings, and whether buybacks remain modest or scale up if the share price weakens further. The next few quarters of 13F filings, operating results and comments from Abel and Buffett at annual meetings will help show whether this is a one off reset or the beginning of a more active, higher turnover approach to capital allocation.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.