Greg Abel Has Kept 60% of Berkshire's $359 Billion Stock Portfolio in Just 5 Companies, Even After Eliminating 16 Other Positions in His First Quarter. Is That Concentration a Risk for Shareholders?
Performance risk is the larger issue moving forward with Berkshire and its stock portfolio.
Overview
Since succeeding Warren Buffett as CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) last January, Greg Abel has made some major changes to Berkshire's stock portfolio. In the two quarters since taking the helm of the Oracle of Omaha's holding company, Abel has both increased stock holdings and jettisoned many positions, including a few held for many decades.
However, Abel hasn't materially decreased Berkshire's positions in Apple, American Express, Alphabet, Bank of America, and Coca-Cola. During Q2 2026, Berkshire trimmed its BofA stake by 5.9%, while increasing its Alphabet position by 45.2%.
Details
These five blue chip stocks now account for around 60% of its investments in U.S.-listed equities. Yet while this indeed represents high concentration, is that in itself a major risk? Not necessarily.
Source
Originally published at www.fool.com.