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Somewhat Bullish +50

Greg Abel Has Over 60% of Berkshire Hathaway's Stock Portfolio Invested in 9 Forever Stocks

AI-generated analysis

Greg Abel took over as CEO of Berkshire Hathaway at the start of 2026, succeeding Warren Buffett in managing the bulk of the portfolio.

Abel identified nine specific companies as core holdings that Berkshire will hold indefinitely with limited trading activity.

These nine stocks collectively represent over 60% of Berkshire Hathaway's equity portfolio.

Apple is Berkshire's largest marketable equity position despite a significant reduction in holdings during Warren Buffett's final two years.

Apple's lower capital intensity compared to peers has allowed it to generate over $100 billion in free cash flow in 2026.

iPhone sales grew 23% year over year driven by strength in Greater China, with strong performance also seen in services.

American Express remains a core holding after over 30 years due to its success in attracting high-end consumers and small businesses.

Coca-Cola is valued for its global brand recognition which allows the company to raise prices steadily in established markets.

Moody's is considered a core position by Abel, with a wide moat provided by the network effect of its credit ratings business.

The article suggests that Apple and American Express may currently look like attractive opportunities given their fundamentals relative to valuation.

Berkshire Hathaway holds significant unrealized capital gains on many of these original investments, reducing the incentive for immediate sales.

Bullish Signals
  • Apple (NASDAQ: AAPL) is Berkshire Hathaway's largest marketable equity position, and CEO Greg Abel suggests the previous selling spree could be over.
  • Despite hyperscalers spending over $700 billion on AI data centers this year, Apple is on track for free cash flow exceeding $100 billion.
  • iPhone sales rose 23% year over year last quarter, driven by strength in Greater China, with potential for another strong year if the Siri revamp succeeds.
  • American Express (NYSE: AXP) shows strong operating leverage, driving earnings growth faster than its top line, and trades at an attractive forward P/E of just 17.
  • Coca-Cola (NYSE: KO) achieved mid-single-digit revenue growth last year primarily through price increases, with investors expecting similar growth in 2026 plus better earnings-per-share expansion.
  • Moody's (NYSE: MCO) is guiding for 9% revenue growth and expects double-digit earnings per share growth next year driven by pricing power and operating leverage.
  • Buffett's Berkshire Hathaway sits on $29.5 billion in capital gains on its original investment in Coca-Cola, signaling a long-term hold rather than an immediate sale.
Risk Factors
  • Apple (NASDAQ: AAPL) trades at a high valuation of 30 times forward earnings, which may limit upside potential despite strong recent sales.
  • Siri development faces delays in its revamped AI feature introduction, creating uncertainty around future device upgrade cycles and customer retention.
  • American Express (NYSE: AXP) annual fees are growing quickly, potentially deterring high-end consumers or triggering regulatory scrutiny despite fee increases being a small part of revenue.
  • Coca-Cola (NYSE: KO) is trading at 24 times forward earnings, considered slightly overpriced relative to its slow-and-steady business model and mid-single-digit growth targets.
  • Moody's (NYSE: MCO) lost significant Berkshire backing previously with half of the shares sold off in 2009-2010, raising questions about the stability of this new 'core' designation under Abel despite current confidence.
Full Analysis
Berkshire Hathaway successor Greg Abel, who assumed control of the portfolio at the start of 2026, has publicly identified nine core equity holdings that he intends to hold indefinitely with limited trading activity, representing over 60% of the firm's total stock portfolio. This strategic shift follows Warren Buffett's previous approach, though Abel's list differs in composition from Buffett's original "forever" selections. The article details Apple (NASDAQ: AAPL), which remains Berkshire's largest marketable equity position despite significant sales under Buffett; Abel notes that selling may be concluding given the company's strong free cash flow exceeding $100 billion this year and a 23% year-over-year increase in iPhone sales driven by performance in Greater China. The report also highlights American Express (NYSE: AXP) as a core holding for over 30 years, praising its successful pivot to high-end consumers and small businesses with its refreshed Platinum card portfolio, which now generates significant revenue from net interest income alongside traditional interchange fees, trading at a forward P/E of 17. Coca-Cola (NYSE: KO) is another longtime position valued for its global brand recognition and pricing power, with management targeting mid-single-digit long-term revenue growth and expected earnings-per-share expansion supported by margin improvements and share repurchases, although the stock trades at 24 times forward earnings. Additionally, Moody's (NYSE: MCO) has been explicitly named as a core position despite not being on Buffett's original list, benefiting from its trusted network effect in bond rating that creates a wide moat for its Investors Service division, which accounts for roughly two-thirds of income, with guidance for 9% revenue growth and anticipated double-digit earnings-per-share increases.