After Warren Buffett retired as CEO on Dec. 31, Greg Abel took over day-to-day operations at Berkshire Hathaway and its $363 billion investment portfolio. In the first quarter, Abel exited 16 stocks and trimmed six others, including Bank of America (BAC). Since July 2024, Buffett and Abel have together sold over 549 million BofA shares, or 53% of a 1.03-billion-share position. Earlier, the stock looked vulnerable because of its premium to book value, its sensitivity to Fed rate cuts, and Abel's omission of BofA from his shareholder letter. However, after third-quarter results BofA trades at only a 30% premium to book value, and the Fed's rate-hiking cycle began on Sept. 16, which could boost its net interest income, so the narrative is shifting.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Not So Fast ! One Warren Buffett Core Positions at Berkshire Hathaway May Not Get the Heave - Ho by Successor Greg Abel After All .
Read the original on fool.com ↗
Keywords
Berkshire HathawayWarren BuffettbanksBank of America
Open a keyword to see other news on the same topic.
Related news
- Not So Fast! One Warren Buffett's Core Positions at Berkshire Hathaway May Not Get the Heave-Ho by Successor Greg Abel After All.
After Warren Buffett retired on Dec. 31, Greg Abel took over the day-to-day operations and the $363 billion investment portfolio at Berkshire Hathaway, disposing of 16 stocks in the first quarter and paring six others. Buffett and Abel have collectively sold more than 549 million Bank of America shares since July 2024, or 53% of a 1.03-billion-share position. Earlier, three factors suggested BofA might exit the portfolio: its valuation premium to book value, its high sensitivity to interest rates among money-center banks, and its omission from Abel's letter on companies that can compound for decades. The article argues these factors have reversed: BofA now trades at only a 30% premium to book value after its third-quarter results, and the Fed began only its fourth rate-hiking cycle of the century on Sept. 16, which should benefit BofA's net interest income.
- This Table Explains Exactly Why Warren Buffett and Berkshire Hathaway Have Struggled to Find Stocks to Buy and Where You Can Find Great Value Stocks Right Now
Greg Abel ended Berkshire Hathaway's 14-quarter streak last quarter by buying more stocks for the marketable equity portfolio than he sold. Warren Buffett had previously trimmed large positions, leaving Abel with a record $369 billion in cash. The article attributes the difficulty in finding opportunities to valuations: large-cap stocks trade at a premium of 10% to 19% to their historical levels, and value stocks are the most overvalued relative to their historic range. In contrast, small- and mid-cap value stocks trade below historical valuations, a segment that large institutions often overlook while individual investors can invest more freely. The article mentions two value ETFs, AVUV and DFAT, which both add profitability screens to avoid value traps.
- Warren Buffett Warned About Stock Valuations. So Why Is Berkshire Still Buying Stocks?
In an early-May CNBC interview, Warren Buffett answered “Yeah” when asked whether stock prices were too high, saying many things would look very silly. From May 1 (7,230.12) to Oct. 15 (7,744.06), the S&P 500 rose 7%. Even so, Berkshire Hathaway became a net buyer of stocks in Q2 for the first time in three and a half years, buying about $23.5 billion while selling about $3.7 billion, and it bought back $4.5 billion of its own stock. It also invested in Alphabet, now nearly 13% of its equity portfolio, and in the recent IPO of Bending Spoons, with $600 million in July and $330 million in a private placement this month. The article notes Bending Spoons trades at 29 times forward earnings and will carry significant debt, so it is not a bargain in the traditional sense.
- Berkshire Hathaway (BRK.B) After Buffett: Can Its Capital Allocation Machine Keep Compounding?
Berkshire Hathaway (BRK.B) returned 10.56% over the six months to October 15, versus 21.5% for the Insider Monkey Billionaire Index and 15.74% for the State Street SPDR S&P 500 ETF Trust. Since Greg Abel became CEO, the company invested about $10 billion in Alphabet in the second quarter of 2026, repurchased roughly $4.5 billion of its own shares and acquired homebuilder Taylor Morrison for about $6.8 billion. Its insurance float stood at approximately $177.5 billion at the end of June, and after 14 consecutive quarters as a net seller of stocks, Berkshire bought more equities than it sold in the second quarter. The company also invested $600 million in Bending Spoons' July IPO and $330 million more in October, lifting its stake to 4%. The article notes BRK.B's trailing P/E of 12.75x versus a forward P/E of 22.73x, attributes the gap to how investment gains and losses flow into reported earnings, and cautions against drawing conclusions from either figure alone.
- Warren Buffett Says He Has "Never Felt Better" About Berkshire Hathaway's Future as He Steps Down as Chairman at 96
Warren Buffett, who built Berkshire Hathaway into a $1.1 trillion company, handed the chairmanship to his son Howard and remains as chairman emeritus at age 96. In a 2014 letter, he said the chance of permanent capital loss for patient shareholders is as low as can be found among single-company investments, because intrinsic value per share is almost certain to advance over time. Greg Abel, a longtime Berkshire manager who has led its energy operations, was chosen as successor CEO, and Buffett said in his farewell letter that his expectations for Abel were sky high and have been exceeded. Buffett also said he has never felt better about what comes next. The article notes BRKB's forward P/E of 25.6 is above its five-year average of 21.2, and considers the shares reasonably valued or a bit overvalued.
- Warren Buffett Isnt Worried About Bear Markets , and You Shouldnt Be , Either . Here Why .
The article argues that investors should not fear bear markets, citing Warren Buffett, who has invested through all market environments and beaten the market over time. During six decades as CEO of Berkshire Hathaway, he achieved a compounded annual increase of almost 20%, compared with about 10% for the S&P 500 over that period. During the 2008 financial crisis, Buffett wrote in The New York Times that bad news is an investor's best friend because it lets you buy a slice of America's future at a marked-down price. The article adds that the S&P 500 has historically rebounded after downturns and climbed significantly over the long run, so buying during declines and holding for years can be a sound plan.
Related markets
Latest news
- TRX Gold to Present at Red Cloud's Fall Mining Showcase 2026
TRX Gold will present at Red Cloud's Fall Mining Showcase 2026, an in-person conference at the Omni King Edward Hotel in Toronto on October 28 and 29, 2026. Stephen Mullowney is scheduled to present on Thursday, October 29, 2026 at 12:00 PM Eastern. The release describes the company as a gold producer advancing the Buckreef Gold Project in Tanzania, which includes an established open pit and a 2,000 tonnes per day plant. The May 2025 PEA outlines average annual gold production of 62,000 oz over 17.6 years.
- Tesla Stock vs. the S&P 500: Which Investment Wins Through 2030?
The article argues Tesla trades at roughly 203 times this year's expected earnings and 13 times expected sales, a valuation that looks very expensive given gross margin pressure and a slower-than-expected robotaxi rollout. The flying Roadster, slated for production in 2028, is unlikely to make a meaningful sales or earnings contribution before 2030. The author thinks a Tesla-SpaceX merger by the end of the decade, likely an all-stock deal, is more likely than not and would be a key factor in how Tesla stock performs against the S&P 500 through 2030.
- SpaceX surprises Wall Street with Oct. 20 earnings date — here's why
SpaceX (SPCX) will release earnings on Oct. 20 after the market close, a surprise since earnings dates are usually shared weeks in advance. Evercore ISI analyst Kutgun Maral says possible reasons include putting updated financials on record before new financing or getting ahead of major lock-up releases, though scheduling is also possible. Reuters reported SpaceX is seeking $40 billion in financing to buy advanced Nvidia AI chips, including about $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo expected to lead. The lock-up schedule includes 1.30 billion shares two days after earnings, 329 million on 10/24, and a remaining 857 million tranche of the 180-day group.
- AEP Partners with Amazon and X-energy to Explore Advanced Nuclear Energy in Indiana
American Electric Power (AEP) has announced a joint development agreement with X-energy to evaluate the feasibility of a 960-megawatt advanced nuclear project at a former coal plant site in Sullivan County, Indiana. Amazon is supporting development through a funding agreement. If the project reaches a final investment decision and is built, Amazon intends to buy the power under a long-term contract covering the facility's costs and operations. The initial project would include 12 Xe-100 units of 80 MW each, and the companies say it could create jobs, expand the local tax base and strengthen the grid for more than 60 years. AEP says the agreements include the financial safeguards it considers essential for any nuclear project to move forward.
- Talamore Marks One Year at Coffee with Major Advances Toward a 2027 Construction Decision
Talamore Mining marks one year since closing its acquisition of the Coffee Gold Project in Yukon, Canada, from Newmont Corporation on October 17, 2025. The company has assembled a financing package of up to C$688 million, including a C$149.5 million equity offering, a C$450 million secured project debt facility and up to C$88 million from a warrant early-exercise program. A primary road permit received in August 2026 allows completion of the 214-kilometre Northern Access Route from Dawson City. The February 2026 Preliminary Economic Assessment outlined a 13-year open-pit heap leach mine with an after-tax NPV (5%) of US$2.3 billion and an after-tax IRR of 47.8%. G Mining Services is completing the Feasibility Study, expected in Q1 2027, ahead of a construction decision targeted for the first half of 2027.
- Tiger Gold Extends Mineralization to the South at Ceibal, Drilling 268 m @ 0.5 g/t Au from Surface
Tiger Gold reported assay results from hole CEDDH-023 at its Ceibal target within the Quinchía Gold Project in Colombia. The hole intersected 268 metres grading 0.5 g/t Au from surface, extending mineralization south into a previously untested part of the corridor. Mineralization remains open to the west and southwest, where additional holes are testing for extension, and assays from Ceibal and Tesorito are pending. The drilling is intended to support a maiden Mineral Resource estimate, targeted for near the end of Q1 2027.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.