The Motley Fool·2026-01-25 10:45Core Viewpoint - Berkshire Hathaway's investment strategy remains stable under new CEO Greg Abel, with a focus on long-term holdings, despite significant reductions in its Apple stake [1][2]. Group 1: Berkshire Hathaway's Investment Strategy - Warren Buffett's legacy includes a portfolio that may not see immediate changes, with some stocks potentially held indefinitely [1]. - Buffett has sold a substantial amount of equities, including a nearly three-quarters reduction in Berkshire's stake in Apple [2][5]. - The sale of Apple shares, combined with the rise of other holdings, could lead to a new top equity position for Berkshire for the first time since 2017 [3]. Group 2: Apple Investment Insights - Buffett's investment in Apple, exceeding $30 billion from 2016 to 2018, is considered one of his best, with the stake valued at approximately $174 billion by the end of 2023 [4]. - Despite the significant value of the Apple stake, Buffett has trimmed it due to concerns that the stock price has surpassed its intrinsic value [5]. - Apple shares currently trade at a P/E ratio of 33, with expected earnings growth slowing to about 11% per year, leading to perceptions of overvaluation [8]. Group 3: American Express as a Key Holding - American Express, despite its strong performance, remains a stable investment for Berkshire, with a current stake valued at about $54 billion, maintaining a consistent percentage of Berkshire's overall market cap [14]. - The forward P/E ratio for American Express is around 20, which is not considered excessive, and the company is successfully targeting high-end consumers [16]. - Strong product offerings and spending growth are expected to drive significant revenue and earnings growth for American Express, justifying its valuation and solidifying its position in Berkshire's portfolio [18].