• In the first quarter of 2026, following Warren Buffett’s retirement as CEO, Berkshire Hathaway under Greg Abel overhauled its equity portfolio, exiting 16 long-held positions such as Visa, Mastercard, Amazon, and UnitedHealth while adding names like Delta Air Lines, Macy’s, and significantly expanding its Alphabet stake.
• This marks a new era for Berkshire, blending its traditional concentration in blue-chip holdings like Apple, Coca-Cola, and American Express with faster capital recycling and a more pronounced tilt toward technology and AI-related businesses.
• We’ll now examine how Greg Abel’s accelerated portfolio reshaping, especially the bigger Alphabet position, influences Berkshire Hathaway’s evolving investment narrative.

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What Is Berkshire Hathaway's Investment Narrative?

To own Berkshire today, you need to believe in the enduring power of its diversified operating businesses, massive cash pile and conservative balance sheet, while accepting that the stock portfolio is now being run with a faster hand. Greg Abel’s first quarter at the helm, which saw exits from 16 long-held positions and a tripling of Alphabet, looks material mainly for sentiment and capital allocation rather than near term earnings, which are still driven by insurance, rail and energy. The key short term catalysts remain how that US$397 billion of cash is deployed and whether buybacks reaccelerate, especially with the shares trading below many fair value estimates. The biggest new risk is execution: a relatively new management team reshaping a concentrated portfolio in a market where Berkshire’s recent share performance has lagged broader indices.

However, a newer team moving faster with a concentrated portfolio is something investors should understand. Berkshire Hathaway's shares have been on the rise but are still potentially undervalued by 37%. Find out what it's worth.

Exploring Other Perspectives

Nine members of the Simply Wall St Community currently see Berkshire’s fair value between about US$757,438 and US$1.15 million, underscoring how far opinions can stretch. Against that spread, the recent shift toward larger technology and AI positions, led by Alphabet, puts more weight on Abel’s judgment at a time when Berkshire is also sitting on an unusually large cash balance. You may want to weigh those differing views against the execution and capital deployment risks discussed above before deciding where you stand.

Explore 9 other fair value estimates on Berkshire Hathaway - why the stock might be worth as much as 58% more than the current price!

Form Your Own Verdict

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Berkshire Hathaway research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Berkshire Hathaway research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Berkshire Hathaway's overall financial health at a glance.

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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.