Berkshire Hathaway Portfolio Shifts: New Holdings and Significant Stake Rebalancing

Berkshire Hathaway Embarks on Sweeping Portfolio Reshuffle

In a significant move, Berkshire Hathaway disclosed a comprehensive portfolio reshuffle in its first quarter filing, revealing that the conglomerate had exited 16 positions, including Amazon, Visa, Mastercard, and UnitedHealth Group. Notably, the company added Delta Air Lines and Macy's as new holdings in the quarter.

One of the most notable additions to Berkshire's portfolio is its substantial investment in Alphabet, the parent company of Google. The conglomerate more than tripled its share stake in Alphabet, with the investment valued at $16.6 billion, making it one of Berkshire's largest common stock investments. Additionally, Berkshire more than doubled its stake in The New York Times, with the company now owning 9.4% of the company's stock.

According to the filing, Berkshire acquired $15.94 billion in stocks and sold $24.09 billion of stocks in the January-to-March period, as of March 31. This significant sell-off is attributed to the new leadership of Greg Abel, who took charge as Berkshire's chief executive to succeed Warren Buffett.

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Berkshire's new investment in Delta Air Lines follows a post-pandemic rebound in air travel, although carriers are now struggling with rising fuel costs amid Middle East conflicts. The 6.1% stake in Delta comprises 39.8 million shares, which is a significant increase from Berkshire's previous stake. Delta's shares rose 3.3% in after-hours trading, likely reflecting what investors view as Berkshire's stamp of approval.

In contrast, Berkshire shed significant weight in its portfolio by exiting positions in Visa, Mastercard, UnitedHealth, Domino's Pizza, insurance brokerage Aon, and swimming pool supplies distributor Pool. The conglomerate also sold 35% of its Chevron shares, although the oil company remained Berkshire's fifth-largest stock holding. Chevron's share price rose 36% in the quarter as oil prices surged.

Berkshire's new leadership structure, with Greg Abel overseeing 94% of the company's stock holdings and Ted Weschler handling 6%, has led to a significant portfolio reshuffle. The conglomerate owns dozens of businesses, including the BNSF railroad, Geico car insurance, energy and manufacturing companies, and retail brands such as Brooks, Dairy Queen, Fruit of the Loom, and See's.

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