Berkshire Hathaway's New CEO Ditches 15 Buffett Positions

Greg Abel, the new CEO of Berkshire Hathaway, has made significant changes to the company's investment portfolio in his first quarter on the job. In a bold move, he sold 15 positions initiated by his predecessor, Warren Buffett, including some long-held stocks like Visa and Mastercard.

Abel's sales included both winners and losers for Berkshire Hathaway. Some of the biggest winners that were sold include Amazon, while also selling stakes in Diageo and Domino's Pizza, which have not performed well recently. This suggests that Abel is willing to cut losses and sell positions even if they are profitable.

In contrast, Abel has invested heavily in Alphabet, the parent company of Google, as his largest buy this quarter. He also increased Berkshire's stake in Delta Air Lines. The fact that he sold high-dividend-yielding stocks like Lamar Advertising and Pool Corp., while buying low-dividend-yielders like Alphabet and Delta, suggests that Abel may be prioritizing growth over dividend income.

Berkshire Hathaway's cash position has also increased significantly under Abel's leadership, from $373.3 billion to $397.4 billion in the first quarter. This could suggest that Abel is building up a war chest for future investments or preparing for a potential market downturn.