OMAHA, Neb. — The investment giant Berkshire Hathaway has dramatically expanded its holdings in Google’s parent company and purchased more than $2.6 billion in Delta Airlines shares as Greg Abel began his tenure as chief executive following his appointment to replace Warren Buffett earlier this year.
The investment conglomerate simultaneously sold off numerous holdings, including positions in Visa, Mastercard, Domino’s Pizza, Amazon and United Healthcare following the exit of Todd Combs late last year, who served as one of two portfolio investment managers that Buffett had brought on to assist with managing investments.
Throughout his career, Buffett maintained hesitancy about technology sector investments, explaining he lacked sufficient understanding to identify long-term successful companies in that space. However, Buffett did break from this approach during his final years by acquiring a substantial Apple position after recognizing consumer loyalty to the company’s iPhone and computer products.
Abel demonstrates greater willingness to embrace technology investments, with Berkshire’s Alphabet holdings reaching nearly 58 million shares valued at approximately $17 billion by March’s end. This represents a significant increase from the 17.8 million shares worth $5.6 billion held just three months prior.
The company acquired nearly 40 million Delta shares during the year’s opening quarter. Buffett previously experienced mixed results with airline sector investments, having purchased airline stocks multiple times before ultimately divesting those positions.
During a 2008 shareholder meeting, Buffett remarked that “if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down” due to the airline industry’s ongoing struggles to maintain competitive advantages since the Wright brothers’ first flight.
The company also initiated a new position in Macy’s valued at approximately $55 million as of March’s conclusion.
Berkshire maintains its policy of not discussing quarterly changes to its $280 billion investment portfolio to avoid revealing its trading strategies. Abel recently conducted his first annual shareholder meeting as chief executive while Buffett observed from the floor alongside other board members.
Numerous investors have historically monitored Berkshire’s holdings to replicate Buffett’s investment decisions. This pattern may shift until Abel develops his own track record as an investment manager, given his background primarily involves operating businesses such as Berkshire’s utility holdings.
Several stocks that Berkshire disclosed new positions in on Friday experienced price increases following the company’s regulatory filing with the Securities and Exchange Commission. Both Macy’s and Delta share prices rose after the disclosure, while Alphabet’s stock remained relatively unchanged.
The Omaha, Nebraska-headquartered company maintains ownership of numerous other enterprises including major insurance providers like Geico, BNSF railroad, large manufacturing operations like Precision Castparts and various retail and service companies featuring recognizable brands such as Helzberg Diamonds, See’s Candy and Dairy Queen.
