TLDR
- Greg Abel, Berkshire Hathaway’s new CEO, named Apple (AAPL), American Express (AXP), Coca-Cola, and Moody’s (MCO) as long-term “forever” holdings
- Abel’s first shareholder letter pledges to maintain Buffett’s value investing strategy and “fortress-like balance sheet”
- Berkshire’s Q4 operating earnings fell 29% year-over-year to $10.2 billion, partly due to insurance weakness
- Bank of America and Chevron were notably absent from Abel’s core holdings list
- Warren Buffett will remain as chairman, in the office five days a week in an advisory role
Greg Abel has sent his first shareholder letter as CEO of Berkshire Hathaway, naming four stocks he plans to hold long-term and revealing a sharp drop in quarterly earnings.
Abel took over from Warren Buffett at the start of 2026, after Buffett announced his retirement in May 2025. Buffett remains as chairman and will still be in the office five days a week.
In the letter, Abel identified four core equity holdings that Berkshire plans to keep with “limited activity.” These are Apple, American Express, Coca-Cola, and Moody’s.
Abel described them as businesses Berkshire “understands well,” with strong leadership and long-term growth potential. He said the company would only “significantly adjust” a holding if its long-term outlook changed.
These four stocks, along with stakes in five Japanese trading companies, make up roughly two-thirds of Berkshire’s equity portfolio. The combined value of those nine holdings sits at over $200 billion.
What’s Not on the Forever List
Two of Berkshire’s top five holdings were left off the core list: Bank of America and Chevron. Berkshire has already cut its Bank of America stake roughly in half over the past 18 months, down to about 517 million shares worth around $28 billion.
The Chevron position is valued at about $20 billion but was also absent from Abel’s “forever” category. That omission has drawn attention from Berkshire watchers.
Berkshire’s Apple stake is worth far more than its original cost. The company paid around $27 per share on average, compared to a current price of around $264. Buffett had cut the Apple position by about 80% from its peak, but Abel’s letter suggests no further cuts are planned.
Q4 Earnings Take a Hit
Berkshire reported Q4 operating earnings of $10.2 billion, down more than 29% from $14.56 billion in the same period a year ago. The decline was driven in part by weaker performance in its insurance business.
For the full year 2025, Berkshire posted operating earnings of $44.5 billion, below 2024’s $47.4 billion but above the five-year average of $37.5 billion.
Berkshire’s cash and Treasury holdings stood at $373.3 billion at the end of Q4, down slightly from $382 billion the prior quarter. Abel called this “dry powder” ready to deploy when opportunities arise.
The question of who manages Berkshire’s day-to-day equity portfolio remains open. Abel has no background as a portfolio manager. Investment manager Ted Weschler will manage just 6% of investments, roughly the same as before Buffett’s retirement.
Abel wrote that “responsibility ultimately rests with me as CEO” on capital allocation decisions, with Buffett available to consult.
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