4 Berkshire Hathaway Stocks That New CEO Greg Abel "Expect Will Compound Over Decades"

Core Insights - New CEO Greg Abel has delivered his first annual letter to Berkshire Hathaway shareholders, outlining his plans for the company and providing a detailed overview of its operations and a $318 billion equities portfolio [1] Investment Strategy - Abel highlighted four key stocks in Berkshire's portfolio that are expected to compound over decades, indicating a strategy of limited activity in these holdings [2] Key Holdings - Apple (AAPL): Represents 18.9% of the portfolio; historically, it was as high as 40%. Berkshire first invested in Apple in 2016. Despite trimming its stake by about 75% in recent years, Apple remains a significant position due to its strong performance and buyback strategy [4][6] - American Express (AXP): Accounts for 14.7% of the portfolio; Berkshire has held this stock since 1964. The company is known for its premium brand and closed-loop payment network, which generates steady revenue. American Express has also been a consistent performer in terms of earnings growth [8][11] - Coca-Cola (KO): Comprises 10.2% of the portfolio; it is viewed as a defensive consumer staple stock. Coca-Cola has a long history of dividend payments, being a Dividend King for 63 years, and has shown resilience in uncertain economic conditions [12][15] - Moody's (MCO): Represents 3.7% of the portfolio; Berkshire first acquired this stock in 2000. Moody's plays a crucial role in providing debt ratings, controlling about 95% of the market alongside two other major players. The company is well-positioned to adapt to changes in the market, including the impact of AI [16][17][18]