Berkshire Sells Visa, Domino's, and Pool Corp: Should You Follow?

Summary

The torch has officially been passed. On May 15, Berkshire Hathaway NYSE: BRK.A released its first Form 13F under new CEO Greg Abel, marking the first time in more than 60 years that Warren Buffett’s name didn’t appear on the ledger. Abel’s tenure began when the 95-year-old Buffett officially stepped down on Jan. 1, and the new CEO’s first 13F reveals an equity book that’s slimming down and raising cash. Berkshire fully exited 16 different positions totaling $8.1 billion, its largest net equity sale since Q3 2024. Is this a continuation of Buffett’s value-centric approach, or a new CEO flexing muscle? A few hints emerge when breaking down the filing. What Greg Abel’s First Quarter as CEO Says About Berkshire’s StrategyIn many ways, Abel’s first 13F revealed that Berkshire remains as focused as ever on patiently waiting for bargains. The company’s equity book now holds just 26 stocks, down from over 40 last year, and its cash position sits at a record $397 billion. A few points stand out: Higher Concentration: Abel’s equity book is smaller and full of high-conviction bets, including moving Alphabet Inc. NASDAQ: GOOGL into a top seven position. Buffett was famous for avoiding expensive tech stocks, so this shows Abel is more willing to swing big when he sees an opportunity, even if it goes against traditional value metrics. Value Still Overwhelming Focus: Abel deployed capital into multiple beaten-down stocks trading at discounts to their average value, including Delta Air Lines Inc. NYSE: DAL and Macy’s Inc. NYSE: M. Investments like these show that valuation is still the backbone of the Berkshire portfolio. Unwinding the Combs Book: One of Berkshire’s top investors, Todd Combs, left for JPMorgan late last year, and many of the positions closed out in Q1 had been opened by him. Closing out Combs’ book was clearly a priority for Abel, who now controls more than 90% of Berkshire’s trading. Analyzing 3 Berkshire Stock Sales From the Latest 13FThe biggest theme emerging ...