Greg Abel Is Now Running Berkshire. Here Are the 3 Moves That Will Define His Era

Core Insights - Greg Abel officially took over as CEO of Berkshire Hathaway on January 1, 2026, and has already made significant moves that indicate a shift in the company's investment strategy [2][4]. Group 1: Exit from Underperforming Investments - Berkshire Hathaway is exiting its 27.5% stake in Kraft Heinz, which is expected to result in a $2.5 billion loss, signaling a commitment to intellectual honesty and a willingness to cut losses on poor investments [3][4]. - This decision reflects Abel's approach to capital management, prioritizing the redeployment of funds into more promising opportunities [4]. Group 2: Restructuring the Equity Portfolio - In Q4 2025, Berkshire reduced its stakes in major companies such as Apple, Bank of America, and Amazon, reallocating those funds to new investments [5]. - New positions include significant holdings in The New York Times, increased stakes in Chevron and Chubb, and an initiation of a stake in Domino's Pizza [5][6]. - The total reportable U.S. equity holdings for Berkshire at the end of the quarter stood at $274.2 billion, reflecting a 2.6% increase from the previous quarter [5]. Group 3: Strategic Focus on Economic Moats - Analysts have highlighted Domino's Pizza as a particularly compelling investment due to its strong brand, logistics network, and franchise model, which create a robust competitive advantage [6]. - The overall strategy under Abel includes exiting underperforming positions and focusing on companies with significant economic moats, while also resuming buybacks to signal that Berkshire is trading below its intrinsic value [7].