Greg Abel Reveals Berkshire’s 4 Untouchable Holdings in Debut Letter

TLDR

• In his inaugural shareholder communication, Greg Abel designated Apple (AAPL), American Express (AXP), Coca-Cola, and Moody’s (MCO) as permanent portfolio positions
• The new CEO’s debut letter commits to continuing Buffett’s philosophy of value investing and maintaining a robust financial position
• Fourth-quarter operating profits declined 29% compared to the previous year, reaching $10.2 billion, influenced by insurance segment challenges
• Bank of America and Chevron didn’t make Abel’s list of untouchable holdings
• Buffett transitions to chairman role while maintaining a full-time office presence for advisory purposes

In his inaugural communication to shareholders, Greg Abel has outlined Berkshire Hathaway’s strategic direction as CEO, highlighting four equity positions the conglomerate intends to maintain indefinitely while disclosing a significant decline in quarterly profits.

Abel assumed the chief executive position from Warren Buffett beginning in 2026, following Buffett’s retirement announcement in May 2025. The legendary investor continues serving as chairman with plans to work full-time from the office.

The letter pinpointed four primary equity investments that Berkshire intends to preserve with “limited activity.” The quartet consists of Apple, American Express, Coca-Cola, and Moody’s.

Apple Inc., AAPL

Abel characterized these as companies Berkshire “understands well,” featuring solid management teams and promising long-term expansion prospects. He indicated the firm would only “significantly adjust” any position if fundamental changes occurred in its future outlook.

These four investments, combined with ownership stakes in five Japanese trading corporations, represent approximately two-thirds of Berkshire’s stock portfolio. The aggregate market value of these nine positions exceeds $200 billion.

What’s Not on the Forever List

Notably absent from the core holdings list were two top-five positions: Bank of America and Chevron. The Bank of America stake has been reduced by approximately half during the previous 18 months, declining to roughly 517 million shares with a market value near $28 billion.

The Chevron holding, valued at approximately $20 billion, similarly failed to earn “forever” designation from Abel. This exclusion has sparked discussion among longtime Berkshire observers.

Berkshire’s Apple investment has appreciated substantially beyond its initial purchase price. The conglomerate’s average cost basis stands around $27 per share, while the stock currently trades near $264. Although Buffett previously trimmed the Apple position by roughly 80% from peak levels, Abel’s correspondence indicates no additional reductions are anticipated.

Q4 Earnings Take a Hit

Berkshire disclosed fourth-quarter operating profits of $10.2 billion, representing a decline exceeding 29% from the year-earlier figure of $14.56 billion. The downturn stemmed partially from diminished results in the insurance operations.

For calendar year 2025, Berkshire generated operating earnings totaling $44.5 billion, falling short of 2024’s $47.4 billion but exceeding the five-year average of $37.5 billion.

Berkshire’s combined cash and Treasury bill reserves totaled $373.3 billion at quarter-end, representing a modest decline from the previous quarter’s $382 billion. Abel referenced this substantial liquidity as “dry powder” positioned for deployment when attractive investment opportunities emerge.

Uncertainty surrounds the matter of portfolio management responsibilities going forward. Abel lacks experience as an investment professional. Investment manager Ted Weschler will oversee approximately 6% of the portfolio, consistent with his allocation during Buffett’s tenure.

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