Greg Abel Is Reshaping Berkshire's Portfolio. Here's Who's In and Who's Out.
2026-10-13 08:30
•Bram Berkowitz •The Motley Fool
•• •••••••••••••••••••••••••••••••• Axe Cap view
Greg Abel’s Berkshire: A Clear Shift in Playbook
Berkshire Hathaway’s portfolio pivot under Greg Abel shows a bold tech tilt and cautious energy stance, with lessons for SA investors.
Greg Abel’s changes at Berkshire mark a subtle but meaningful shift from Buffett’s approach. Abel has doubled down on tech giants like Alphabet and Apple, signaling conviction in the digital economy’s endurance despite global uncertainties. His move into Delta Airlines is a surprising contrarian bet, reflecting measured confidence in travel recovery. Energy holdings Chevron and Occidental Petroleum remain large but unloved, pointing to caution around volatile oil prices. For South African investors, this subtle shift highlights the tech sector’s growing dominance even distant from our shores. Locally, Naspers and Prosus remain attractive proxies to ride global tech trends. Abel’s restraint on Bank of America contrasts with our own banks, which have shown resilience amid rate hikes and consumer credit concerns. The key takeaway: diversification into growth themes like tech, balanced with selective exposure to cyclical sectors, might outperform straight value plays. But if inflation or geopolitical shocks worsen, the appetite for growth stocks could sour quickly. this is just our opinion and not financial advice
Buy Naspers and Prosus for exposure to global tech growth, and watch banks like Standard Bank for stable earnings amid rate cycles. Avoid heavy energy exposure on the JSE until oil price direction is clearer.
- Naspers
- Prosus
- Standard Bank
- USD/ZAR
- Global inflation spikes hitting tech valuations
- Rand volatility linked to energy price swings
7/10
Greg Abel, nine months into his tenure as Berkshire Hathaway CEO, is reshaping the company's $350 billion equities portfolio. He has designated Apple, American Express, Coca-Cola, and Moody's as core holdings with limited activity expected. Meanwhile, Abel has significantly increased positions in Alphabet (now 10.6% of portfolio), initiated new stakes in Delta Airlines, and increased exposure to housing through Lennar. Energy holdings like Chevron and Occidental Petroleum remain uncommitted, while Bank of America has been slightly trimmed. Abel has also resumed share repurchases after years of pause.
Our take is based on reporting first published by The Motley Fool.