Warren Buffett's Successor, Greg Abel, Has Over 35% of Berkshire Hathaway's $359 Billion Portfolio Invested in Just 2 Undeniable Winners

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For the first time in well over half a century, Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB) entered the year in uncharted territory. Its longtime leader, Warren Buffett, retired as CEO at the end of last year, handing the proverbial baton, and the oversight of Berkshire's $359 billion investment portfolio, to Greg Abel.

Buffett's successor wasted little time overhauling Berkshire's portfolio in the first quarter. But while several changes were made, one central investing thesis remains the same: portfolio concentration. Both the Oracle of Omaha and Abel strongly believe in concentrating Berkshire's invested capital in their best ideas, which is why Apple (NASDAQ:AAPL) and American Express (NYSE:AXP) currently account for more than 35% ($126.7 billion) of invested assets!

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Warren Buffett and his successor, Greg Abel, believe in highly concentrated portfolios. Image source: Getty Images.

Warren Buffett began piling into the iPhone maker during the first quarter of 2016. While Apple's technology and its innovation are often what attract investors, Buffett was lured by its ability to keep customers loyal and charge a premium for its physical devices (iPhone, iPad, and Mac). In other words, he viewed it as more of a consumer-goods titan than a triumphant tech company.

But in the nine quarters leading up to the Oracle of Omaha's retirement (Oct. 1, 2023 – Dec. 31, 2025), Buffett dumped 75% of Berkshire Hathaway's stake in Apple. While some of this selling might be tax-based, Apple's premium valuation may also have played a role.

When Buffett initially purchased Apple stock, it was valued at a trailing 12-month (TTM) price-to-earnings (P/E) ratio of 10 to 15. It now commands a TTM P/E ratio of 38.

Despite Apple…

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