Warren Buffett's Berkshire Hathaway Bought This Dividend Stock for a Reason. Here's Why Greg Abel Won't Sell.
Since taking over as CEO, Greg Abel has made some big portfolio moves, but there's one longtime Buffett holding even he won't touch.
Overview
Since taking over as CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) at the start of this year, Greg Abel hasn't wasted much time. In less than nine months, Warren Buffett's successor has made quite a few major investments, including increasing Berkshire's position in Alphabet by $17 billion, as well as acquiring homebuilder Taylor Morrison for $8.5 billion.
Abel has removed numerous stocks from the Berkshire equity portfolio, most notably Mastercard, Visa, and UnitedHealth Group. Yet while Abel hasn't shied away from reshaping Berkshire's stock portfolio, there is one particular name among the well-known Warren Buffett investments that he'll likely not touch: Coca-Cola (NYSE: KO).
Details
Berkshire's 9.3% stake in Coca-Cola, a $35.5 billion position that accounts for nearly 10% of Berkshire's overall stock portfolio, is one of the stocks most associated with the "Oracle of Omaha." Abel will likely continue to hold this position as is. Not out of sentiment, but out of cold, hard economics.
Source
Originally published at www.fool.com.