Berkshire Hathaway's New CEO Concentrates Portfolio in Top-Performing Tech Stocks

Greg Abel, Warren Buffett's successor as Berkshire Hathaway's CEO, has taken a similar approach to his predecessor in managing the conglomerate's $360 billion investment portfolio. Since assuming control on December 31, Abel has concentrated 63% of the company's assets in five top-performing stocks: Apple, Alphabet (Google's parent), American Express, Coca-Cola, and Bank of America.

The concentration of Berkshire Hathaway's investments in tech stocks, led by Apple and Alphabet, reflects the changing landscape of the conglomerate. Tech now accounts for more than 30% of the company's portfolio, a significant shift from Buffett's era when he avoided tech stocks. Abel has more than tripled Berkshire's stake in Alphabet since taking over in January.

The value of American Express and Coca-Cola holdings remains unchanged as they are considered 'indefinite' holdings by Berkshire Hathaway. These companies have low cost bases and high yields, making them attractive to the conglomerate. In contrast, Bank of America has seen its stake reduced for an eighth consecutive quarter under Abel's leadership.