Warren Buffett’s Berkshire Hathaway executed one of its most significant portfolio overhauls in years during the first quarter of 2026, selling stakes in 16 companies while initiating new positions and boosting others as Greg Abel assumed the CEO role.

The conglomerate’s equity portfolio contracted from about $274 billion to $263 billion, with the number of holdings dropping from around 40 to 29. Berkshire was a net seller, purchasing roughly $16 billion in stocks while selling $24 billion.

Buffett, who stepped down as CEO at the end of 2025 but remains chairman and involved in investment decisions, oversaw the transition period. The Q1 13F filing, released May 15, reflects Abel’s first full quarter leading day-to-day operations.

Key sales and complete exits

Berkshire fully exited several positions, including long-held or more recent stakes. Complete sells included Visa, Mastercard, UnitedHealth Group, Domino’s Pizza, Amazon, Aon, Pool Corp., and others such as Heico, Liberty Media entities, Charter Communications, Lamar Advertising, Allegion, Diageo, Liberty Latin America, and Atlanta Braves Holdings.

Visa and Mastercard exits totaled billions, reflecting a departure from payment processors. The remaining Amazon shares were sold after prior reductions. UnitedHealth and Domino’s also saw full liquidation.

Trimmed positions included Bank of America, Chevron (cut substantially), DaVita, Nucor, and Constellation Brands. Chevron’s reduction was among the largest adjustments despite remaining a top holding.

Notable buys and increases

Berkshire initiated new stakes in Delta Air Lines and Macy’s. The Delta position reached 39.8 million shares, valued at about $2.8 billion, marking a return to airlines after a full exit in 2020 during the pandemic.

The company significantly boosted its Alphabet holdings. Shares of Alphabet Class A (GOOGL) increased by more than 200%, reaching around 54.2 million shares worth roughly $15.6 billion. A new position in Alphabet Class C (GOOG) added about 3.6 million shares valued near $1 billion.

Berkshire also added to existing positions in Chubb and the New York Times, tripling its NYT stake in some reports from prior quarters.

Top holdings remain concentrated

The portfolio stayed highly concentrated, with the top five holdings — Apple, American Express, Coca-Cola, Bank of America, and Chevron — accounting for about 68% of the equity portfolio. Apple alone represented around 22%.

American Express held steady as a core long-term position. Coca-Cola, a decades-long holding, saw no major changes. These “core” names underscore continuity even amid broader adjustments.

Context of the transition

The moves come as Abel reshapes aspects of the portfolio, including unwinding certain positions previously associated with former managers Todd Combs and Ted Weschler. Combs left at the end of 2025.

Berkshire repurchased $234 million of its own shares in the quarter at 144% of book value. Cash levels remained elevated, consistent with recent trends of net stock sales.

Analysts note the portfolio’s concentration and focus on high-quality businesses with durable advantages. Many sales targeted higher-valuation or cyclical names, while additions like Delta reflect opportunistic buying in beaten-down sectors.

Market reaction and implications

The 13F disclosure prompted varied responses. Some investors viewed the Alphabet increase as a nod to technology and AI growth, despite Buffett’s historical caution toward the sector. Delta’s re-entry highlighted potential value in travel recovery.

Exits from payment giants and health care names like UnitedHealth raised questions about sector rotation. Shares of several sold companies saw limited immediate movement, though UnitedHealth traded lower in after-hours following the news.

As of late May 2026, Berkshire’s strategy continues emphasizing long-term value, capital allocation, and insurance float leverage. The company’s Japanese trading house investments, including stakes in companies like Mitsubishi and Marubeni, remain outside the U.S. equity 13F but contribute to overall returns.

Broader investment landscape

Berkshire’s activity occurs against a backdrop of elevated market valuations, interest rate uncertainty, and sector shifts driven by artificial intelligence and energy demand. The portfolio’s reduction in holdings reflects a more focused approach.

Buffett has reiterated in past communications the importance of buying wonderful businesses at fair prices and holding them long-term. While Abel steers day-to-day decisions, continuity with Buffett’s philosophy appears evident in core holdings.

Investors tracking Berkshire often use 13F filings as a delayed signal of strategy, though the conglomerate’s size limits agility compared to smaller funds. Future quarters will reveal whether Q1 changes represent a one-time reset or ongoing evolution.

Looking ahead in 2026

With half the year remaining, additional 13F updates will provide further insight into Berkshire’s direction under Abel. The company’s annual meeting in May offered shareholder perspectives, though specific stock picks remain disclosed quarterly.

Berkshire’s cash pile and operational strength provide flexibility for opportunistic deployments. Analysts will watch for activity in energy, financials, and consumer sectors where the firm has historically excelled.

As always, individual investors should conduct their own due diligence. Berkshire’s moves reflect its unique scale, time horizon, and risk tolerance rather than general recommendations. Stock prices fluctuate, and past performance is no guarantee of future results.