Abel Concentrates Berkshire Portfolio in Top Tech and Consumer Stocks
Greg Abel, the new CEO of Berkshire Hathaway, has taken a similar approach to his predecessor Warren Buffett in managing the conglomerate's $360 billion investment portfolio. A significant portion of the portfolio, approximately 63%, is concentrated in five stocks: Apple (AAPL), American Express (AXP), Alphabet (GOOGL and GOOG), Coca-Cola (KO), and Bank of America (BAC).
Abel has maintained Buffett's strategy of focusing on high-performing companies, with these five stocks making up a substantial portion of the portfolio. Apple is the largest holding at $72.87 billion, accounting for 20.2% of invested assets. Alphabet, which includes Google Cloud, has seen significant growth since Abel took over and has become a major contributor to Berkshire's tech-driven conglomerate.
Berkshire's stake in Bank of America has been gradually reduced by both Buffett and Abel over the past two years, with more than 30 million shares sold during the second quarter. While Bank of America benefits from lengthy economic expansions, its valuation may be a concern for long-term investors.