Berkshire Hathaway's New CEO Steers Company Towards Tech
Greg Abel has been running Berkshire Hathaway as its CEO for nearly three quarters. Despite taking over from Warren Buffett, who is one of the most famous investors in history, Abel's strategy has not seen a radical change. In fact, the transition has been gradual, and many of the company's operations remain unchanged.
Berkshire's big purchase of Alphabet stock has been one of the notable moves under Abel's tenure. This is not surprising, given that analysts and shareholders had expected the company to make technology holdings a bigger part of its portfolio when Abel succeeded Buffett as CEO. Alphabet's impressive sales growth, stellar profitability, strong brand strength, and considerable competitive moat make it a natural fit for Berkshire's portfolio.
Alphabet currently accounts for roughly 10.5% of Berkshire's stock portfolio between class A and class B shares, which is the highest percentage held by any tech company in the portfolio, except for Apple, which accounts for around 20.8%. The fact that two tech companies now account for roughly 31% of Berkshire's total stock holdings suggests that Abel may continue to increase his focus on technology.