A New Era at Berkshire Hathaway: Decoding the Shift Under Greg Abel
For decades, Berkshire Hathaway functioned as a reflection of Warren Buffett’s disciplined, value-oriented philosophy. However, the first quarter of 2026 signaled a definitive transition. Under new CEO Greg Abel, the conglomerate is shedding its old skin, moving away from specific legacy holdings and embracing sectors that Buffett historically avoided.
For investors, these moves are more than just portfolio rebalancing—they represent a fundamental shift in how the world’s most famous holding company approaches risk, technology, and industry cycles.
1. Moving Beyond the Credit Card Giants
One of the most eye-catching developments in Q1 was the complete exit from credit card processors Visa and Mastercard. While these positions never represented a massive slice of Berkshire’s total portfolio—each accounted for approximately 1%—the move is highly symbolic.
By dumping these holdings, Abel is signaling a pivot away from the middleman model in financial services. Interestingly, Berkshire retained its massive $47 billion stake in American Express. This suggests that while Abel may be skeptical of the broader payment-processing sector, he continues to see deep, moat-like value in the unique brand and closed-loop ecosystem of American Express.
2. The Airline Re-Entry: A Calculated Risk
Perhaps the most surprising move was the acquisition of 39.8 million shares in Delta Air Lines, a position valued at $2.8 billion. This marks a stark reversal from 2020, when Berkshire liquidated its multi-billion dollar airline portfolio during the height of the COVID-19 pandemic.
By re-entering the airline space, Abel is demonstrating a higher tolerance for cyclical volatility than his predecessor. While the airline industry remains sensitive to geopolitical tensions and fuel prices, the recent performance of the stock suggests that Berkshire’s management sees a long-term recovery trajectory that justifies the risk.
3. Doubling Down on Big Tech
Warren Buffett was famously cautious about technology stocks, often citing a lack of expertise in the sector. Greg Abel’s leadership, however, is proving to be far more tech-forward. In Q1 2026, Berkshire significantly increased its footprint in Alphabet.
The firm tripled its stake in Alphabet’s A shares, bringing that position to $23 billion, while also picking up 3.6 million C shares. This makes Alphabet one of Berkshire’s top holdings, underscoring a belief that even the largest tech giants still hold significant room for growth in the current economic landscape.
Streamlining for Efficiency
Beyond the major headlines, the most aggressive move was the quiet exit from 16 different positions, including Pool Corp, UnitedHealth, and Amazon. These “pointlessly small” holdings were likely viewed as distractions. By cleaning out these positions, Abel is focusing the management team on the trades that truly move the needle, prioritizing capital allocation efficiency over diversification for its own sake.
Frequently Asked Questions
Why did Berkshire sell Visa and Mastercard but keep American Express?
While the exact internal rationale isn’t public, the decision suggests a preference for the American Express business model, which operates as both a card issuer and a payment network, compared to the pure-play processing models of Visa and Mastercard.
Is Berkshire Hathaway still a “value” stock?
Berkshire continues to hold significant value-oriented assets, but its recent moves into tech and cyclical industries suggest a modern evolution that balances traditional value with growth-oriented sector exposure.
Should I mirror Berkshire’s portfolio moves?
While Berkshire’s moves provide insight into institutional sentiment, they are made with a multi-decade time horizon and a specific risk profile. Individual investors should always weigh such moves against their own personal financial goals and risk tolerance.
What do you think of the new direction under Greg Abel? Are you surprised by the return to the airline sector, or is this the tech-forward pivot the company needed? Join the conversation below and let us know your thoughts on the future of Berkshire Hathaway.
