Key Highlights

  • Berkshire Hathaway raised its Alphabet stake by 224%, making it the seventh-largest Equity holding
  • A new $2.6 billion position in Delta Air Lines marks the conglomerate's return to aviation
  • Berkshire exited Visa, Mastercard, Amazon, and several other long-held positions in Q1 2026
  • Chevron exposure was cut by approximately 35%, representing over $8 billion in share sales
  • Portfolio reshaping coincides with the departure of Investment manager Todd Combs to JPMorgan

A New Hand on the Portfolio

The first full quarter under Greg Abel's Leadership has produced a notably different-looking Berkshire Hathaway (NYSE: BRK.B). The conglomerate's latest SEC filing reveals a series of decisive moves that collectively suggest a recalibration in investment philosophy, sector exposure, and risk appetite. Whether this constitutes a deliberate long-term strategy or a transitional clean-up of inherited positions remains an open analytical question. The market, however, is paying close attention.

The Alphabet Conviction

The single most significant move was a dramatic increase in Berkshire's position in Alphabet (Nasdaq: GOOGL), the Parent Company of Google. Holdings grew by 224%, bringing the total to nearly 58 million shares. At current valuations, the position carries substantial weight within the broader equity portfolio.

The strategic rationale appears grounded in Alphabet's structural Revenue trajectory. Google Cloud has emerged as one of the most consequential growth engines in the technology sector, with AI-related cloud revenue expanding at an exceptional rate year over year. Search and Advertising revenues continue to compound steadily, while subscription services are now serving hundreds of millions of users globally.

For a conglomerate historically anchored in Capital-light financials, consumer staples, and energy, this level of commitment to a technology holding represents a meaningful shift in sector allocation. It also signals that Abel may be positioning Berkshire to capture long-cycle infrastructure growth within AI-driven digital services.

Aviation: A Calculated Re-Entry

Berkshire's new stake in Delta Air Lines (NYSE:DAL), valued at approximately $2.6 billion at quarter end, is symbolically significant. The conglomerate exited all airline holdings in 2020, citing structural Demand concerns following the Pandemic. That decision was widely discussed as one of the most memorable defensive retreats in modern institutional investing.

The re-entry into aviation, specifically through Delta, suggests a revised assessment of long-term travel demand fundamentals. Delta occupies a structurally advantaged position within the North American airline industry, with a premium customer base and a relatively disciplined cost structure compared to peers. Whether this position reflects a broader thesis on discretionary travel recovery or is more narrowly stock-specific remains unclear from the filing alone.

Portfolio Exits and the Combs Legacy

A significant portion of Q1 selling activity appears connected to the departure of Todd Combs, who left Berkshire at the end of 2025. Positions in Visa (NYSE: V), Mastercard (NYSE:MA), and Amazon (NASDAQ:AMZN), all associated with Combs's earlier hedge fund background, were reduced substantially or exited entirely. Additional sales included UnitedHealth Group, Aon, Pool Corporation, Domino's Pizza, and Charter Communications.

This consolidation suggests that Abel is rationalising the equity book around a tighter set of high-conviction ideas rather than maintaining a broad range of portfolio manager-specific bets. The exit of Combs has functionally concentrated decision-making, which may produce greater portfolio coherence over time.

Notably, Berkshire also reduced its energy exposure materially, trimming Chevron (NYSE: CVX) by approximately 35%. This move contrasts with Berkshire's historically strong commitment to domestic energy holdings and warrants monitoring as an indication of how Abel weighs energy transition risk in long-duration capital allocation.

Valuation and Context

Berkshire's own shares have declined modestly year to date, while the broader US equity market has appreciated. This performance gap may reflect short-term uncertainty around the leadership transition, or it could indicate that the market is still assessing how Abel's investment discipline compares to Buffett's half-century record. Long-term investors are likely to reserve judgment until a fuller picture emerges across multiple reporting cycles.