The Motley Fool·2026-03-07 07:05Core Insights - New CEO Greg Abel outlines his vision for Berkshire Hathaway in an 18-page letter to shareholders, detailing company performance and future positioning, particularly regarding its $318 billion equities portfolio [1] Berkshire's Portfolio Strategy - Abel identifies four key positions in Berkshire's portfolio: Apple, American Express, Coca-Cola, and Moody's, which he believes will compound over decades with limited activity unless fundamental changes occur [2] - Notably, two of Berkshire's top-five positions were excluded from this core holding list, raising questions about their future in the portfolio [2] Bank of America Holdings - Bank of America constitutes 8.1% of Berkshire's portfolio but was not mentioned as a core holding by Abel, indicating a potential shift in strategy regarding bank stocks [4] - Berkshire has reduced its stake in Bank of America by half in recent years, despite a strong historical investment following the Great Recession [5] - The stock currently trades at approximately 175% of its tangible book value, suggesting that Berkshire may seek banks with more attractive valuations [8] Chevron's Position - Chevron, making up 6.5% of the portfolio, was also not highlighted as a core holding by Abel, which is surprising given Berkshire's recent investments in U.S. energy assets [9] - Despite previous sales, Berkshire has increased its position in Chevron since Q2 2023, indicating ongoing confidence in the company [10] - Chevron's strong balance sheet and plans to triple production in Venezuela position it well for future growth, although its exclusion from the core holdings list raises questions [13]