Key Takeaways:
Berkshire Hathaway Inc. sharply curtailed its public equity portfolio in the first quarter, cutting 14 positions and reducing its total holdings from 40 to just 26 stocks.
"Prices for a whole lot of things look very silly," Chairman Warren Buffett told CNBC, addressing the firm's growing cash pile and lack of buying opportunities.
According to its Q1 2026 13F filing, the company was a net seller of nearly $8.2 billion in equities. It completely exited positions in Amazon.com Inc., Domino’s Pizza Inc., and UnitedHealth Group Inc., while significantly trimming its stake in Chevron Corp. and increasing its Alphabet Inc. holdings by 225 percent.
The move, occurring in new CEO Greg Abel's first quarter, shrinks the public portfolio to $263 billion and swells Berkshire's cash hoard to a record $397.4 billion, giving the company immense firepower for future acquisitions or a market downturn.
The first-quarter activity marks the 14th consecutive quarter that Berkshire has been a net seller of stocks. The sales come as the company's operating earnings rose 17.7 percent year-over-year to more than $10.1 billion, driven by its insurance businesses.
In a sign of confidence, CEO Greg Abel purchased $15 million in Berkshire's Class A stock in March. The company also resumed share buybacks for the first time in six quarters, repurchasing $235 million of its own stock at approximately 1.4 times book value.
The portfolio consolidation signals a more concentrated, defensive posture under new leadership, prioritizing cash and conviction bets. Investors will now watch to see how Abel deploys the record cash pile, with the next major catalyst being the Q2 earnings report in August.
This article is for informational purposes only and does not constitute investment advice.
