SHAFA

Berkshire Hathaway, now led by Greg Abel following Warren Buffett’s transition, is already signaling a notable shift in investment strategy. Under Abel’s leadership, the company more than tripled its stake in Alphabet, increasing its holdings from 17.8 million shares to nearly 58 million, valued at about $17 billion. This marks a stronger embrace of large-cap technology compared to Buffett’s historically cautious stance toward the sector. At the same time, Berkshire made a significant move into the airline industry by purchasing over $2.6 billion worth of shares in Delta Air Lines, acquiring nearly 40 million shares in just one quarter. This is particularly notable given Buffett’s long-standing skepticism about airlines as investments, once famously criticizing the industry’s inability to sustain competitive advantages. Abel’s willingness to re-enter this space suggests a more flexible and opportunistic investment approach. In contrast to these new positions, Berkshire reduced exposure across several major holdings, including Visa, Mastercard, Amazon, Domino's Pizza, and UnitedHealth Group. These portfolio changes come after the departure of investment manager Todd Combs, indicating a broader reshaping of Berkshire’s equity strategy. Additionally, the company initiated a new, smaller position in Macy's, valued at around $55 million. While relatively minor compared to its larger bets, the move reflects continued diversification across sectors. Despite these changes, Berkshire remains a massive and diversified conglomerate with a portfolio valued at approximately $280 billion, alongside wholly owned businesses such as GEICO, BNSF Railway, and Dairy Queen. Investors have historically mirrored Berkshire’s moves under Buffett’s leadership, but it remains uncertain whether Greg Abel will command the same influence as he builds his track record as a capital allocator. #BerkshireHeavilyIncreasesAlphabetStake