Abel Sells 15 Buffett Stock Positions, Prioritizes Cash Reserves

Greg Abel, the new CEO of Berkshire Hathaway, made significant changes to the company's investment portfolio in his first quarter as head. He sold 15 positions initiated by his predecessor Warren Buffett, including some long-held stocks such as Visa and Mastercard. The move suggests that Abel will not hesitate to divest positions if he doesn't see a market-beating return.

The sold positions included several high-dividend-yielders like Lamar Advertising and Diageo, which currently yield 4% and 3.8%, respectively. This departure from Buffett's focus on dividend income is notable, as the former CEO often emphasized the importance of dividends in his investing philosophy. 'I do believe in dividends in a great many situations,' Buffett said in 2008.

In contrast to the sold positions, Abel's biggest buy was Alphabet, which pays only a 0.2% dividend. Berkshire Hathaway also increased its cash position in Q1, from $373.3 billion at the start of the quarter to $397.4 billion at the end. This suggests that Abel is prioritizing building up cash reserves over earning returns through dividends.