New CEO Greg Abel Reshapes Berkshire Hathaway's Portfolio
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: NASDAQ.COM
- Portfolio Restructuring: New CEO Greg Abel swiftly reshaped Berkshire Hathaway's portfolio in Q1 by completely exiting several stocks and increasing positions in others, demonstrating a strong confidence in the company's future and a commitment to strategic realignment.
- Apple's Strong Performance: Apple (AAPL), as Berkshire's top holding, remains a preferred choice for long-term investors due to its robust cash flow and profit growth, despite not heavily investing in artificial intelligence, with expectations for continued growth in the future.
- Moody's Rating Pressure: Moody's (MCO) shares have fallen about 35% from their peak, trading at a P/E ratio of 31, and while facing uncertainties from AI, analysts project an 11% annual earnings growth over the next three to five years, potentially marking a buying opportunity.
- Growth Potential of Google and American Express: Alphabet (GOOGL) increased its share in Berkshire's portfolio to 6.8%, with expected earnings growth of over 16% annually in the next three to five years; meanwhile, American Express (AXP) is projected to grow earnings nearly 14% annually, supported by its strong financial ecosystem and appeal to younger consumers.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AAPL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to fall
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 312.510
Low
239.00
Averages
306.89
High
350.00
Current: 312.510
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home and Accessories. Its services include advertising, AppleCare, cloud services, digital content, and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its wearables include smartwatches, wireless headphones, and spatial computers. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Apple Inc. Ranks 3rd in Jim Simons' Best Stocks List
- Portfolio Dynamics: According to Renaissance Technologies' 13F filings, Apple Inc. (AAPL) acquired over 3 million shares in Q1 2026, indicating the fund's ongoing investment interest despite previous short-term trades.
- Revenue Growth Highlight: In Q2 2026, Apple's iPhone revenue reached a record $56.99 billion, surging 22% year-over-year, primarily driven by demand for the iPhone 17 lineup and new form factors, showcasing strong market demand.
- Regional Market Performance: Despite widespread concerns about a slowdown in Asian markets, Apple's sales in Greater China rebounded sharply, jumping 28% year-over-year to $20.5 billion, demonstrating robust recovery capabilities in the region.
- Record Services Revenue: Apple's services revenue hit an all-time high of $30.98 billion in Q2 2026, posting a 16% year-over-year growth, further solidifying its strategic focus on diversified revenue streams.
See More
Bank of America Bullish on Apple and Nvidia Stocks
- BofA Stock Picks: Bank of America remains bullish on stocks like Apple and Nvidia as it heads into June, highlighting their significant upside potential, particularly in the current economic climate, making them attractive assets for investors.
- Toll Brothers Strong Performance: Analyst Rafe Jadrosich noted that Toll Brothers delivered a 'rare' beat and raise in its latest quarterly report, with healthy margins and robust demand for luxury homes, positioning it as a top pick despite a challenging macroeconomic environment.
- Citigroup Future Potential: Citigroup has risen 67% over the past 12 months, with BofA analyst Ebrahim Poonawala raising the 12-month price target from $150 to $170, believing the company's proactive approach in AI will further drive stock price increases.
- Retail Stocks Outlook: BofA analyst Robert Ohmes sees strong growth momentum in Dollar General and National Vision Holdings, particularly as Dollar General enhances delivery capabilities through partnerships with Uber and Instacart, despite recent stock declines, making them attractive buying opportunities.
See More
Ritholtz Launches Concentrated Investment Portfolio Porterhouse
- Portfolio Innovation: Ritholtz Wealth Management has launched the Porterhouse portfolio, designed to capture the best market opportunities through a rules-based momentum strategy that emphasizes strong earnings growth and persistent share price strength, catering to clients seeking selective investments.
- Market Adaptability: The strategy does not rely on predicting market themes but leverages the collective judgment of investors, with Brown noting that market wisdom makes momentum strategies effective, capturing less obvious beneficiaries like Ciena, which has seen its stock soar over 140% in 2026 due to AI infrastructure buildout.
- Flexible Account Structure: As a separately managed account, Porterhouse offers flexibility not available in many momentum ETFs, allowing it to hold cash when stocks violate sell rules, thus avoiding holding declining stocks and protecting investor capital.
- Client Availability: Porterhouse will be available to qualified Ritholtz clients starting June 1, marking a significant step in the company's effort to provide more selective investment strategies and further solidifying its leadership in the wealth management sector.
See More
Analysis of Abel's Investment Strategy in First Quarter
- Portfolio Major Adjustment: In his first quarter as CEO, Abel increased Berkshire Hathaway's stake in Alphabet to 6.7%, indicating a strong confidence in the artificial intelligence sector that may influence the company's future investment direction.
- Capex and Free Cash Flow: Alphabet's projected capital expenditures for this year are between $180 billion and $190 billion, which will reduce free cash flow from over $73 billion last year to about $26 billion this year; however, Abel's investment decision reflects recognition of Alphabet's long-term growth potential.
- Market Share and Competitive Advantage: Alphabet holds an 85% to 90% market share in the traditional internet search market, and its large language model, Gemini, is believed to help protect its market position, suggesting that Abel's investment may further solidify Berkshire's competitive edge in this area.
- Divergent Choices Among Hedge Fund Managers: While other prominent hedge fund managers like Bill Ackman and Stanley Druckenmiller opted to reduce their stakes in Alphabet, Abel's strategy of increasing investment demonstrates his unique perspective on the company's future performance, potentially influencing overall market confidence in Alphabet.
See More
Greg Abel Takes Over Buffett, Increases Stake in Alphabet
- Leadership Transition: Greg Abel took over as CEO of Berkshire Hathaway at the beginning of this year, and despite the immense pressure of succeeding Warren Buffett, he quickly adjusted the investment portfolio in his first quarter, demonstrating decisive leadership.
- Increased Stake in Alphabet: In the first quarter, Berkshire increased its stake in Alphabet to 6.7%, making it the fifth-largest holding in the portfolio, indicating Abel's confidence in the artificial intelligence sector, which contrasts with Buffett's traditional investment style.
- Market Share Advantage: Alphabet commands an 85% to 90% share of the traditional internet search market, and Abel's investment strategy may aim to leverage this strong market position and future growth potential, particularly driven by advancements in AI technology.
- Contrasting Investor Sentiments: While Abel was accumulating shares of Alphabet, other prominent hedge fund managers like Bill Ackman and Stanley Druckenmiller opted to reduce their stakes, reflecting differing views on Alphabet's future, and Abel's decisions may prove to be prescient in the long run.
See More
Apple's Potential in Agentic AI Market
- Market Potential Assessment: Analysts believe Apple is well-positioned in the agentic AI sector, with its robust ecosystem providing a competitive edge, potentially generating $15 billion to $30 billion in AI-related revenue by fiscal 2030, which, while modest relative to Apple's overall revenue, indicates significant growth potential.
- Product Innovation Capability: Apple typically adopts a cautious approach when launching new technologies, innovating on existing models to attract users, as evidenced by the success of the iPhone and AirPods, suggesting it could similarly lead in the AI space.
- User Base Advantage: With over 2 billion devices in circulation, Apple can rapidly deploy new AI features, enhancing user retention and leveraging data to boost network effects, thereby strengthening its market competitiveness.
- Long-term Investment Value: Despite facing tariffs and regulatory scrutiny, Apple's strong customer loyalty and expanding high-margin services segment position it as a solid long-term investment, especially as AI technology matures, with future profit potential looking promising.
See More
Apple Inc. Ranks 3rd in Jim Simons' Best Stocks List
- Portfolio Dynamics: According to Renaissance Technologies' 13F filings, Apple Inc. (AAPL) acquired over 3 million shares in Q1 2026, indicating the fund's ongoing investment interest despite previous short-term trades.
- Revenue Growth Highlight: In Q2 2026, Apple's iPhone revenue reached a record $56.99 billion, surging 22% year-over-year, primarily driven by demand for the iPhone 17 lineup and new form factors, showcasing strong market demand.
- Regional Market Performance: Despite widespread concerns about a slowdown in Asian markets, Apple's sales in Greater China rebounded sharply, jumping 28% year-over-year to $20.5 billion, demonstrating robust recovery capabilities in the region.
- Record Services Revenue: Apple's services revenue hit an all-time high of $30.98 billion in Q2 2026, posting a 16% year-over-year growth, further solidifying its strategic focus on diversified revenue streams.
See More
Bank of America Bullish on Apple and Nvidia Stocks
- BofA Stock Picks: Bank of America remains bullish on stocks like Apple and Nvidia as it heads into June, highlighting their significant upside potential, particularly in the current economic climate, making them attractive assets for investors.
- Toll Brothers Strong Performance: Analyst Rafe Jadrosich noted that Toll Brothers delivered a 'rare' beat and raise in its latest quarterly report, with healthy margins and robust demand for luxury homes, positioning it as a top pick despite a challenging macroeconomic environment.
- Citigroup Future Potential: Citigroup has risen 67% over the past 12 months, with BofA analyst Ebrahim Poonawala raising the 12-month price target from $150 to $170, believing the company's proactive approach in AI will further drive stock price increases.
- Retail Stocks Outlook: BofA analyst Robert Ohmes sees strong growth momentum in Dollar General and National Vision Holdings, particularly as Dollar General enhances delivery capabilities through partnerships with Uber and Instacart, despite recent stock declines, making them attractive buying opportunities.
See More
Ritholtz Launches Concentrated Investment Portfolio Porterhouse
- Portfolio Innovation: Ritholtz Wealth Management has launched the Porterhouse portfolio, designed to capture the best market opportunities through a rules-based momentum strategy that emphasizes strong earnings growth and persistent share price strength, catering to clients seeking selective investments.
- Market Adaptability: The strategy does not rely on predicting market themes but leverages the collective judgment of investors, with Brown noting that market wisdom makes momentum strategies effective, capturing less obvious beneficiaries like Ciena, which has seen its stock soar over 140% in 2026 due to AI infrastructure buildout.
- Flexible Account Structure: As a separately managed account, Porterhouse offers flexibility not available in many momentum ETFs, allowing it to hold cash when stocks violate sell rules, thus avoiding holding declining stocks and protecting investor capital.
- Client Availability: Porterhouse will be available to qualified Ritholtz clients starting June 1, marking a significant step in the company's effort to provide more selective investment strategies and further solidifying its leadership in the wealth management sector.
See More
Analysis of Abel's Investment Strategy in First Quarter
- Portfolio Major Adjustment: In his first quarter as CEO, Abel increased Berkshire Hathaway's stake in Alphabet to 6.7%, indicating a strong confidence in the artificial intelligence sector that may influence the company's future investment direction.
- Capex and Free Cash Flow: Alphabet's projected capital expenditures for this year are between $180 billion and $190 billion, which will reduce free cash flow from over $73 billion last year to about $26 billion this year; however, Abel's investment decision reflects recognition of Alphabet's long-term growth potential.
- Market Share and Competitive Advantage: Alphabet holds an 85% to 90% market share in the traditional internet search market, and its large language model, Gemini, is believed to help protect its market position, suggesting that Abel's investment may further solidify Berkshire's competitive edge in this area.
- Divergent Choices Among Hedge Fund Managers: While other prominent hedge fund managers like Bill Ackman and Stanley Druckenmiller opted to reduce their stakes in Alphabet, Abel's strategy of increasing investment demonstrates his unique perspective on the company's future performance, potentially influencing overall market confidence in Alphabet.
See More
Greg Abel Takes Over Buffett, Increases Stake in Alphabet
- Leadership Transition: Greg Abel took over as CEO of Berkshire Hathaway at the beginning of this year, and despite the immense pressure of succeeding Warren Buffett, he quickly adjusted the investment portfolio in his first quarter, demonstrating decisive leadership.
- Increased Stake in Alphabet: In the first quarter, Berkshire increased its stake in Alphabet to 6.7%, making it the fifth-largest holding in the portfolio, indicating Abel's confidence in the artificial intelligence sector, which contrasts with Buffett's traditional investment style.
- Market Share Advantage: Alphabet commands an 85% to 90% share of the traditional internet search market, and Abel's investment strategy may aim to leverage this strong market position and future growth potential, particularly driven by advancements in AI technology.
- Contrasting Investor Sentiments: While Abel was accumulating shares of Alphabet, other prominent hedge fund managers like Bill Ackman and Stanley Druckenmiller opted to reduce their stakes, reflecting differing views on Alphabet's future, and Abel's decisions may prove to be prescient in the long run.
See More
Apple's Potential in Agentic AI Market
- Market Potential Assessment: Analysts believe Apple is well-positioned in the agentic AI sector, with its robust ecosystem providing a competitive edge, potentially generating $15 billion to $30 billion in AI-related revenue by fiscal 2030, which, while modest relative to Apple's overall revenue, indicates significant growth potential.
- Product Innovation Capability: Apple typically adopts a cautious approach when launching new technologies, innovating on existing models to attract users, as evidenced by the success of the iPhone and AirPods, suggesting it could similarly lead in the AI space.
- User Base Advantage: With over 2 billion devices in circulation, Apple can rapidly deploy new AI features, enhancing user retention and leveraging data to boost network effects, thereby strengthening its market competitiveness.
- Long-term Investment Value: Despite facing tariffs and regulatory scrutiny, Apple's strong customer loyalty and expanding high-margin services segment position it as a solid long-term investment, especially as AI technology matures, with future profit potential looking promising.
See More
