Berkshire Hathaway’s first 13-F filing under new CEO Greg Abel reveals a strong commitment to Apple (AAPL), halting previous sell-offs and maintaining it as the largest portfolio holding. The conglomerate also significantly increased its stake in Alphabet (GOOGL, GOOG), signaling a renewed confidence in major tech companies. These moves, alongside strategic divestments from other holdings, suggest Abel is actively shaping Berkshire’s investment strategy, potentially making the company’s stock more appealing to investors.
Berkshire Hathaway (BRKA) (BRKB) has unveiled its inaugural 13-F filing under the leadership of new CEO Greg Abel, revealing significant strategic shifts in its investment portfolio. Among the most noteworthy decisions was the company's choice to maintain its substantial stake in Apple (AAPL), a move that signals a departure from the multi-quarter selling trend previously overseen by Warren Buffett. This decision appears to confirm suspicions among long-term shareholders that the earlier sales were more about portfolio rebalancing than a diminished outlook on the tech giant.
Complementing this steady hand with Apple, Berkshire Hathaway dramatically increased its investment in Alphabet (GOOG, GOOGL), tripling its position. This expansion into Alphabet, a company whose stake was only recently initiated, underscores a strong vote of confidence in major technology firms, coming from a CEO historically known for his operational expertise in Berkshire's utility sector.
The reshuffling of Berkshire's portfolio extends beyond these two tech giants. The 13-F filing indicates a strategic cleanup of various other holdings, offering a glimpse into Abel's potential direction for managing the conglomerate's equity investments moving forward.
A Reshaped Portfolio with Clear Intentions
Berkshire Hathaway's latest filing shows a steady holding of approximately 228 million shares of Apple, which, despite being reduced from its peak, still constitutes about 22% of the conglomerate's equity portfolio and remains its largest investment. Other major holdings include American Express and Coca-Cola, representing approximately 17% and 12% of the portfolio, respectively.
The substantial increase in Berkshire's Alphabet holdings, from around 17.85 million shares at the close of 2025 to nearly 58 million by the end of March, marks a significant investment of nearly $17 billion. This bold move into technology is particularly noteworthy given Berkshire's historical hesitance with large tech investments.
Further diversification is evident with the disclosure of a new $2.65 billion stake in Delta Air Lines (DAL) and a minor investment in Macy's. These additions signal a willingness to explore sectors that were less frequented by the Buffett-led team.
Conversely, Berkshire took more aggressive selling actions. The company completely exited positions in Amazon, Visa, Mastercard, Domino's Pizza, and UnitedHealth Group. Additionally, its stake in Constellation Brands was reduced by 95%, and its holding in Chevron was also significantly cut. Many of these divested or reduced positions were reportedly linked to former investment manager Todd Combs, suggesting Abel is actively reshaping the equity book with his own strategic vision.
NASDAQ: AAPL
Key Data Points
Apple's Business Fundamentals Support a Long-Term Investment
Beyond the portfolio adjustments, Apple's robust business performance provides a solid rationale for Berkshire's continued significant investment. The company recently reported its strongest March quarter to date for fiscal year 2026, with revenue climbing 17% year-over-year to $111.2 billion. This growth was mirrored across all geographic segments, with earnings per share seeing a 22% increase.
The strength of Apple's performance is broad-based, with iPhone revenue up 22% to $57 billion and its high-margin services segment setting a new record with $31 billion in revenue, up 16%. The services segment, boasting a 76.7% gross margin compared to 38.7% for products, is a critical driver of profitability.
CEO Tim Cook expressed optimism, noting that the iPhone 17 lineup has been the most popular in history through March, and IDC data shows market share gains. Guidance for the fiscal third quarter projects continued revenue growth between 14% and 17%, indicating sustained momentum.
Apple also enhanced shareholder returns by increasing its quarterly dividend by 4% to $0.27 per share and authorizing an additional $100 billion for share buybacks.
However, potential risks include anticipated higher memory costs in the upcoming quarter, potentially exacerbated by the prioritization of AI chips by manufacturers. Furthermore, the upcoming leadership transition, with Tim Cook stepping down as CEO on September 1st in favor of John Ternus, warrants attention. Despite these factors, the long-term investment thesis for Apple, and Berkshire's position in it, appears largely unaffected.
Greg Abel's strategic decisions in his first quarter as CEO—stepping back from the gradual sale of Apple and significantly boosting the Alphabet stake—suggest a proactive approach to managing Berkshire's equity portfolio. This willingness to chart a new course, especially at what appears to be a reasonable valuation for key tech holdings, could enhance the attractiveness of Berkshire Hathaway's stock.
