Defense · Report Line
One of the biggest questions Greg Abel faced after he took over for Warren Buffett as CEO of Berkshire Hathaway at the start of 2026 was how he would manage the company's massive equity portfolio. Unlike Buffett, Abel doesn't have a significant background in capital allocation decisions. Abel is known as a strong operations manager, which makes him well-suited for overseeing Berkshire's dozens of owned-and-operated businesses. With an equity portfolio valued at approximately $360 billion and substantial investable cash and Treasuries, the liquid portfolio constitutes a major portion of Berkshire's value.
Abel made significant moves in his first quarter, purchasing about $4.5 billion in a single stock. The company's quarterly filings also revealed he spent at least $3.3 billion buying more stocks in the current quarter. Abel broke two long streaks at Berkshire Hathaway: he ended Buffett’s streak of 13 consecutive quarters as a net stock seller, buying $23.5 billion worth of equities while selling just $3.7 billion. The largest purchase was Alphabet (GOOG, GOOGL), which Buffett had initiated in the third quarter of 2025. Abel expanded Berkshire’s position in Alphabet significantly, including a $10 billion private placement.
Abel also ended Buffett’s streak of 24 consecutive quarters of share repurchases, buying back a few hundred million in his first quarter. Last quarter, he made a massive step-up in buybacks, spending $4.5 billion and buying an additional $3.3 billion worth of Berkshire shares in July alone. Investors are watching closely, as Buffett has advised shareholders to buy Berkshire stock whenever management buys back shares, assuming the price is below intrinsic value. Despite recent price increases, the stock appears fairly valued, with a price-to-book ratio of around 1.45. Berkshire’s stock performance has been relatively stable in 2026, contrasting with market trends in insurance and railroad stocks, which are key components of Berkshire’s operations. Abel’s strategic capital deployment is expected to continue, with potential for future equity investments and returns to shareholders.
Source: The Motley Fool
