Greg Abel took over as Berkshire Hathaway's CEO after Warren Buffett retired on Dec. 31, and in the first quarter he sold 16 stocks while buying Alphabet. Still, Buffett's 2023 letter and Abel's first shareholder letter both named stocks the company plans to hold long term: Buffett labeled eight companies, including Coca-Cola, American Express, Occidental Petroleum and Japan's five trading houses, as indefinite holdings, while Abel expects four companies, including Coca-Cola and American Express, to compound over decades. Coca-Cola, American Express and Moody's, held since 1988, 1991 and 2000, show yields on cost of 65%, 45% and 41%, respectively. Abel has also favored Japan's trading houses, which have traded at more attractive P/E multiples than U.S. stocks. Apple remains Berkshire's largest holding even though Buffett sold 75% of its stake over nine quarters, and its P/E is now almost 40, compared with 10 to 15 times earnings when Buffett began buying in 2016.
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