Berkshire's new CEO named his four forever stocks

Berkshire Hathaway’s new CEO Greg Abel used his first letter to shareholders to spotlight a smaller set of long-term equity holdings and to underscore discipline on cash and culture as the company moves beyond the Warren Buffett era.

His note highlighted four “forever” positions while omitting Bank of America and Chevron, a choice that tracks with recent portfolio moves and signals a tighter, more concentrated approach, according to Benzinga.

Abel names core holdings, omits Bank of America and Chevron

In his inaugural CEO letter, Abel emphasized a “concentrated approach” to companies Berkshire plans to hold for decades.

Apple, American Express, Coca-Cola, and Moody’s were identified as “forever stocks,” according to Benzinga.

Bank of America and Chevron were not included in that core list even though both ranked among Berkshire’s top-five positions by market value in its fourth-quarter 13F filing, Benzinga reported.

Portfolio moves in late 2025 support the signal

The omissions align with fourth-quarter 2025 activity: Berkshire reduced its Bank of America stake by 9 percent, while raising its Chevron position by 7 percent, according to Benzinga.

The split signals selectivity rather than a blanket exit, and it frames how Abel may manage non-core holdings over time.

Cash stack, culture and pay in the post-Buffett era

Abel reinforced a culture of “stewardship” and decentralized autonomy.

He also highlighted “fortress-like” financial strength, with cash holdings now exceeding $370 billion, Benzinga reported.

The leadership transition comes with a compensation reset. Abel’s base salary is $25 million, compared with Buffett’s long-standing $100,000, according to Benzinga.

Valuation context and utility risk inside Berkshire

On valuation, Berkshire’s market cap of $1,090B sits near the midpoint of a $1,077B sum-of-the-parts valuation range, supporting a hold stance for long-term investors, according to a Seeking Alpha analysis.

Inside the portfolio of operating businesses, Berkshire Hathaway Energy faces pressures from wildfire liabilities and asset sales.

Seeking Alpha’s breakdown estimates BHE’s value has moved from over $49B to about $45B.

Underperformers and what to watch next

Abel was blunt about weaker bets.

The investment in Kraft Heinz was described as “disappointing,” with returns “well short of adequate,” Benzinga reported.

Looking ahead, investors should watch Abel’s capital allocation decisions, as Berkshire’s performance will depend on disciplined deployment beyond Buffett’s tenure, according to Seeking Alpha.

Berkshire’s message under Abel threads continuity with focus: a smaller circle of core stocks, a very large cash cushion, and candid assessments of laggards.

The near-term test is how that playbook translates into steady, long-run compounding across the insurance, energy, and equity portfolios.