Berkshire Hathaway's New CEO Omits Bank of America And Chevron In Letter To Shareholders After Warren Buffett's Exit

Core Insights - Greg Abel's inaugural letter to shareholders indicates a potential shift in Berkshire Hathaway's equity strategy by omitting Bank of America and Chevron from the list of "core" investments [1][3] - The "Core Four" investments identified by Abel include Apple Inc., American Express Co., Coca-Cola Co., and Moody's Corp., which are emphasized as long-term holdings [2] Investment Strategy - Abel's approach focuses on a "concentrated strategy" for businesses that Berkshire intends to hold for decades, reinforcing the idea of long-term investment [2] - The omission of Bank of America and Chevron aligns with a 9% reduction in the Bank of America stake during Q4 2025, while Chevron's position was increased by 7% in the same period [3] Performance Assessment - Abel provided a candid evaluation of underperforming assets, specifically calling the investment in Kraft Heinz Co. "disappointing" and noting that returns have been "well short of adequate" [4] - Despite the underperformance, Berkshire is supporting a pivot toward operational recovery for Kraft Heinz rather than pursuing a breakup [4] Leadership Transition - The transition to Abel's leadership marks a cultural shift towards "stewardship" and decentralized autonomy within Berkshire Hathaway [5] - Abel's compensation has increased to a $25 million base salary, contrasting sharply with Warren Buffett's long-standing $100,000 salary, while maintaining a focus on financial strength with cash holdings exceeding $370 billion [5]