Greg Abel's Q1 purge leaves 4 stocks at 54% of Berkshire Hathaway

Key Takeaways:

Greg Abel slashed Berkshire's portfolio to 26 stocks in Q1 2026
Four stocks now account for 53.8% of the $381 billion portfolio
Apple and American Express alone combine for 36% of holdings

Greg Abel, who succeeded Warren Buffett as Berkshire Hathaway Inc.'s chief executive officer on Jan. 1, eliminated 16 positions from the conglomerate's $381 billion equity portfolio in the first quarter, concentrating more than half the holdings in just four stocks.

"The portfolio restructuring reflects a focus on our highest-conviction names with durable competitive advantages," Abel said in a statement accompanying the Q1 2026 13F filing.

Apple Inc. and American Express Co. anchor the top four, combining for 36% of the portfolio. Berkshire holds 227.9 million Apple shares worth 21.8% of the portfolio and 151.6 million American Express shares representing 14.2%. Coca-Cola Co. and Bank of America Corp. round out the core group at 9.7% and 8.3%, respectively. Abel trimmed the Bank of America stake by just 0.71% in the quarter, a modest reduction compared with the 16 full exits.

The concentration comes as Abel also made Berkshire's first major acquisition of a publicly traded company in years, agreeing to buy homebuilder Taylor Morrison Corp. for $72.50 per share in an all-cash transaction valued at $6.8 billion in equity and $8.5 billion in enterprise value. The deal, which carries a 24% premium to Taylor Morrison's prior stock price, is expected to close in the second half of 2026.

All four core holdings carry Buy ratings from Wall Street analysts. Goldman Sachs has a $400 price target on American Express, Wedbush rates Apple at $400, UBS targets Bank of America at $63, and Citigroup sees Coca-Cola reaching $91. Coca-Cola offers the highest dividend yield among the group at 2.59%, followed by Bank of America at 2.05%.

The portfolio shakeup signals Abel's willingness to act decisively after inheriting a $400 billion cash pile and a portfolio where 70% was concentrated in seven stocks. Investors will watch the Q2 2026 13F filing for further repositioning and any additional deployment of Berkshire's cash reserves.

This article is for informational purposes only and does not constitute investment advice.