Key Highlights
- Q1 2026 marked Berkshire’s most aggressive trading period recently, with $16B in purchases and $24B in disposals
- Greg Abel, serving as the new chief executive, liquidated 16 complete positions such as Amazon, Visa, Mastercard, and UnitedHealth Group
- The conglomerate expanded its Alphabet ownership threefold to 58 million shares, creating a ~$23B position among its top-5 holdings
- Portfolio changes correlate with Todd Combs’ departure, the former investment manager who joined JPMorgan Chase last December
- Warren Buffett appears to have personally invested in Macy’s, acquiring approximately 1% ownership valued at ~$55M
Greg Abel’s first quarter steering Berkshire Hathaway witnessed unprecedented portfolio activity. The Omaha-based conglomerate purchased $16 billion worth of equities while divesting $24 billion during Q1 2026, maintaining an equity portfolio valued above $300 billion.
Abel assumed the chief executive position effective January 1, 2026, succeeding Warren Buffett who stepped down from day-to-day operations. Buffett continues serving as board chairman and remains involved in major investment choices.
The headline-grabbing transaction involved significantly expanding Berkshire’s Alphabet ownership. Holdings surged from 18 million shares to 58 million shares, elevating the position to Berkshire’s fifth-largest at approximately $23 billion in value. Alphabet stock has climbed 25% year-to-date.
Alphabet commands between 89% and 93% of worldwide internet search volume throughout the past ten years. Its Google Cloud segment has demonstrated rapid expansion, posting 63% year-over-year revenue growth with cloud profit margins reaching 33%.
The Rationale Behind Berkshire’s Massive Stock Liquidation
Abel eliminated 16 positions entirely throughout the three-month period. Notable exits encompassed Amazon, Visa, Mastercard, Domino’s Pizza, UnitedHealth Group, Constellation Brands, Aon, and Pool, alongside several others.
A significant portion of these disposals connects directly to Todd Combs’ exit, the veteran Berkshire portfolio manager who departed in December for JPMorgan Chase. According to Barron’s calculations, the liquidated Combs-managed positions totaled approximately $14 billion, representing roughly 5% of his supervised portfolio.
Certain market observers have questioned the wisdom of selling these holdings, noting that enterprises like Visa and Mastercard represent high-quality businesses with promising futures. Conversely, some analysts maintain that retaining investments without their original champion makes limited strategic sense.
The $24 billion divestment generated approximately $2 billion in tax obligations for the quarter.
Berkshire’s Market Perspective and Current Portfolio Composition
Berkshire has maintained net selling activity for 14 straight quarters, accumulating approximately $195 billion in aggregate net disposals. The Buffett Indicator, comparing total market capitalization against GDP, recently achieved a historic peak of 235%, substantially above its long-term 88% average.
Ted Weschler, Berkshire’s remaining investment manager, currently manages roughly 6% of total holdings. His probable selections include Davita, Sirius XM, Kroger, and Capital One. The fresh $3 billion Delta Air Lines stake likely represents a Weschler initiative, aligning with his expanded investment authorization this year.
Berkshire additionally acquired a modest Macy’s position, securing three million shares for approximately $55 million. During a March 31 CNBC appearance, Buffett suggested he had executed “one tiny purchase,” potentially referencing the Macy’s transaction. The department store chain’s substantial real estate assets may prove attractive.
Berkshire’s current cash reserves total $380 billion.
