For decades, Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) was a bastion of consistency in a rapidly changing world. Warren Buffett and Charlie Munger stuck to their roots, investing in high-conviction stocks and company-controlled businesses, mostly outside the tech sector. As other asset managers chased hot trends, Buffett and Munger showcased the advantages of compounding returns over time in key positions they understood well, while staying even-keeled no matter what the market did.
Munger passed away at the age of 99 in November 2023. Buffett stepped down as CEO of Berkshire Hathaway on Jan. 1, 2026, replaced by his hand-picked successor Greg Abel. And on Sept. 18, the conglomerate published a press release stating that Buffett was stepping down as chairman of the board, though he’s remaining a director and taking the title of chairman emeritus. Howard Graham Buffett, one of Buffett’s sons, has been appointed the new chairman of the board, effective immediately.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
With the 96-year-old Buffett focusing more on his personal life, here’s what I predict comes next under Abel.
1. Berkshire’s core holdings will remain relatively unchanged
Less than a year into his term as CEO, Abel has wasted no time making some drastic changes to Berkshire’s portfolio, including pole-vaulting Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) to a top-five holding and cutting its stakes in several smaller positions. But he’s also made it abundantly clear that many of Berkshire’s core holdings will remain pillars of the portfolio.
In his Feb. 28 letter to shareholders, Abel called attention to Berkshire’s concentration in a number of key holdings — including Apple, American Express, Coca-Cola, and Moody’s. But instead of describing the portfolio’s concentration in those positions as a reason to trim them, Abel did the opposite — praising the concentrated approach in companies Berkshire understands well, views as having strong leadership teams, and expects to compound for decades.
There’s no denying this strategy has paid off big time for Berkshire shareholders. As of Dec. 31, 2025, Berkshire’s combined cost basis on Apple, American Express, Coca-Cola, and Moody’s was $9.089 billion — while the combined market value of its stakes was $158.617 billion. Moreover, it collected total dividends of $1.668 billion from those companies in 2025.
