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- Why Berkshire's Latest Move Proves It's Not Really a Warren Buffett Company Anymore
Greg Abel took over as Berkshire Hathaway CEO at the start of 2026, though Warren Buffett and Abel are reportedly in regular contact on investment decisions. Berkshire has taken a stake in Milan-based Bending Spoons, investing $600 million in its IPO over the summer and adding $330 million since, a position of about 0.4% of its portfolio. The author argues this is out of character for Buffett, who was skeptical of acquisitive companies and prefers consistent, predictable earnings, while Bending Spoons buys and turns around troubled software businesses. The author sees the move as a possible turning point toward more risk-taking and tech investment under Abel, and suggests a wait-and-see approach to the stock until his investment choices become clearer.
- Berkshire Hathaway CEO Greg Abel Just Took a Page Out of Warren Buffett's Playbook, Plowing $930 Million Into a 'Wonderful Company at a Fair Price'
CEO Greg Abel has put $930 million into Bending Spoons, a company that acquires, optimizes and reinvests in digital businesses, including $600 million in its July IPO and a further $330 million later, lifting Berkshire's stake to about 4%. Bending Spoons has acquired 50 businesses since 2013, including AOL, Eventbrite and Vimeo. In the second quarter, revenue rose 126% to over $704 million, diluted EPS grew 163% to $0.28, and adjusted operating margin reached 54%. The IPO price was $29 per share and the $330 million purchase was at $33, while the stock now trades near $54.50, a market cap of nearly $35 billion and about 39 times forward earnings. The article argues this reflects Buffett's principle of buying a wonderful company at a fair price, though the stock is no longer a bargain.
- Not So Fast ! One Warren Buffett Core Positions at Berkshire Hathaway May Not Get the Heave - Ho by Successor Greg Abel After All .
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.
- 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.
- 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.
- 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.
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