• Berkshire Hathaway (NYSE:BRK.B) reported a substantial reshaping of its equity portfolio in Q1 under new CEO Greg Abel.
• The company exited positions in Amazon, Visa, Mastercard, Domino’s and UnitedHealth and sharply reduced its Chevron investment.
• Berkshire opened new stakes in Delta Air Lines and Macy’s while significantly adding to its Alphabet holding.
• The changes came alongside continued record cash levels and sizable share repurchases, marking Abel’s first quarter of independently directing investments.

Berkshire Hathaway enters this new phase with its Class B shares recently trading around $482.70 and a mixed return profile, including a gain of 46.7% over three years and 66.6% over five years. Returns over the past year are down 5.8%, with the stock also down 2.8% year to date. This performance context may influence how investors view the shift under fresh leadership.

For shareholders and prospective investors, Greg Abel’s early choices offer a first look at how capital may be deployed in the post Buffett era. The coming quarters will show how consistently this new pattern of moves continues and how it shapes Berkshire’s role in investor portfolios.

Stay updated on the most important news stories for Berkshire Hathaway by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Berkshire Hathaway.

Quick Assessment

• ⚖️ Price vs Analyst Target: At US$482.70, the stock sits about 4.6% below the US$506.09 analyst target, which is within the usual 10% band.
• ✅ Simply Wall St Valuation: Simply Wall St models it as trading about 37% below estimated fair value, suggesting a sizeable valuation gap.
• ✅ Recent Momentum: The stock is up 1.7% over the last 30 days, showing modest positive short term momentum.

There is only one way to know the right time to buy, sell or hold Berkshire Hathaway. Head to Simply Wall St's company report for the latest analysis of Berkshire Hathaway's Fair Value.

Key Considerations

• 📊 Abel’s first quarter of portfolio changes gives you fresh information on how capital might be allocated across sectors in the post Buffett era.
• 📊 Watch how the equity portfolio mix, cash levels, buybacks and any follow up moves in Delta, Macy’s and Alphabet evolve against the current P/E of 14.4 and analyst target of US$506.09.
• ⚠️ Analysts currently expect earnings to decline by an average of 2.4% per year over the next 3 years, so link any new investments to how they could affect that earnings path.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Berkshire Hathaway analysis. Alternatively, you can check out the community page for Berkshire Hathaway to see how other investors believe this latest news will impact the company's narrative.

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.