Berkshire's New Era: Greg Abel Maintains Apple Stake Despite Valuation Concerns

Greg Abel, who succeeded Warren Buffett as CEO of Berkshire Hathaway on December 31, 2025, is signaling a long-term commitment to Apple (AAPL) by adding the tech giant to the firm's 'indefinite holding' list. This designation suggests a strategic shift in how the conglomerate views its core equity positions. The decision marks a potential departure from the rigid value-investing discipline championed by Buffett. While the former CEO prioritized buying assets at a significant discount, Apple currently trades at 33 times its trailing 12-month earnings per share (EPS). This represents a steep premium compared to the 10-15x EPS range that attracted Buffett to the company when Berkshire first began building its stake in early 2016. The tension between the new leadership's outlook and the previous regime's actions is evident in the trading data. In the nine quarters leading up to his retirement, Buffett reduced Berkshire's Apple position by approximately 75%, selling roughly 687.6 million shares. Despite a period of stagnant sales growth for physical devices between fiscal years 2022 and 2024, Abel views Apple as a multidecade compounder. This optimism is likely driven by the company's thriving subscription services and the integration of 'Apple Intelligence' into its hardware ecosystem. Along with Apple, Abel has also added Moody's to the list of permanent holdings. Market observers are now monitoring whether Abel's willingness to hold historically expensive, high-quality assets will lead to further portfolio diversification or if the firm will eventually return to the strict valuation requirements of the Buffett era.