Greg Abel Defines New Strategic Core for Berkshire Hathaway's $320 Billion Portfolio

Greg Abel, the new CEO of Berkshire Hathaway, has outlined a concentrated investment strategy in his inaugural letter to shareholders, revealing that just nine 'core positions' now account for approximately 60% of the company's $320 billion stock portfolio. While Abel brings a proven track record in operational management, this move establishes a clear framework for the firm's marketable equity portfolio, aiming to anchor the company with high-moat businesses. A primary focus remains Apple (AAPL). After a period of selling shares between late 2023 and 2025, Abel's communications suggest that the selling phase may have concluded. With a potential Siri revamp and AI-driven upgrade cycle expected throughout 2026, Berkshire views the tech giant as a high-cash-flow asset, though it currently trades near fair value at roughly 31 times forward earnings. American Express (AXP) also remains a pillar of the strategy. The company has successfully pivoted toward increased credit extension and higher card fees, with net interest income growing 12% last year. Trading at 18 times earnings, Amex is positioned as a strong value play with consistent revenue growth and strong operating leverage. The concentration of assets suggests that Berkshire will be less active in rotating its primary holdings moving forward. By focusing on a small group of 'wonderful businesses,' Abel is signaling a commitment to stability and quality over aggressive portfolio turnover, maintaining the legacy of his predecessor while applying a more operational lens to management.