Berkshire Hathaway Offloads $24B in Equities While Expanding Alphabet Position Under New Leadership

TLDR

• Berkshire executed $16B in purchases and $24B in sales during Q1 2026, marking unprecedented portfolio activity
• CEO Greg Abel eliminated 16 positions, including stakes in Amazon, Visa, Mastercard, and UnitedHealth Group
• The conglomerate expanded its Alphabet position threefold to 58 million shares, creating a ~$23B holding in the top five
• The massive selloff correlates with Todd Combs’ departure to JPMorgan Chase in December
• A modest Macy’s stake worth approximately $55M may represent a personal Buffett investment

Berkshire Hathaway experienced unprecedented portfolio activity during the first quarter of 2026 under newly appointed CEO Greg Abel. The investment powerhouse purchased $16 billion worth of equities while divesting $24 billion, maintaining a total equity portfolio valuation exceeding $300 billion.

Abel assumed the chief executive position on January 1, 2026, following Warren Buffett’s transition from the operational role. While Buffett continues serving as chairman and maintains influence over investment strategy, Abel now leads the organization’s day-to-day operations.

The quarter’s standout transaction involved a significant expansion of Berkshire’s Alphabet position. The firm grew its stake from 18 million shares to 58 million shares, elevating the tech giant to Berkshire’s fifth-largest investment at approximately $23 billion in value. Alphabet stock has surged 25% year-to-date.

Alphabet Inc., GOOGL

Alphabet commands between 89% and 93% of worldwide internet search activity over the last ten years. The company’s Google Cloud segment has demonstrated robust expansion, posting 63% revenue growth year-over-year with cloud operating margins reaching 33%.

The Rationale Behind Berkshire’s Extensive Portfolio Reduction

Abel orchestrated complete exits from 16 holdings throughout the quarter. The departed positions encompassed Amazon, Visa, Mastercard, Domino’s Pizza, UnitedHealth Group, Constellation Brands, Aon, and Pool, alongside several others.

A substantial portion of these divestitures connects to Todd Combs’ exit—a veteran Berkshire portfolio manager who departed in December for JPMorgan Chase. According to Barron’s analysis, the liquidated positions formerly managed by Combs totaled approximately $14 billion, representing roughly 5% of his supervised portfolio.

The decision to liquidate these holdings has sparked debate within the investment community. Critics highlight that enterprises such as Visa and Mastercard represent high-quality businesses with favorable prospects. Conversely, some market observers contend that retaining positions without their original champion makes little strategic sense.

The $24 billion divestiture triggered an estimated $2 billion tax liability for the quarter.

Berkshire’s Broader Market Positioning and Current Holdings

Berkshire has maintained net selling activity for 14 straight quarters, accumulating approximately $195 billion in aggregate net dispositions. The Buffett Indicator—which compares total market capitalization to gross domestic product—recently reached a record 235%, significantly above its historical average of 88%.

Ted Weschler, Berkshire’s remaining investment manager, now supervises roughly 6% of the total portfolio. His probable investments include Davita, Sirius XM, Kroger, and Capital One. The fresh $3 billion Delta Air Lines stake is widely attributed to Weschler, aligning with his expanded investment authorization this year.

Berkshire also acquired a minor position in Macy’s, accumulating three million shares valued at approximately $55 million. During a March 31 CNBC appearance, Buffett alluded to making “one tiny purchase,” which likely references the Macy’s transaction. The department store chain’s substantial real estate portfolio may represent the primary attraction.

Berkshire’s cash reserves currently total $380 billion.

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