Berkshire Hathaway has notably re-entered the airline industry, securing a substantial stake in Delta Air Lines. The conglomerate, led by Warren Buffett, built a position exceeding $2.6 billion, marking a significant reversal from its complete exit from the sector during the height of the Covid-19 pandemic in 2020. This new investment positions Delta as Berkshire’s fourteenth-largest holding as of the end of March, according to recent regulatory disclosures.

The move comes six years after Buffett surprised investors by liquidating Berkshire’s entire portfolio of U.S. airline equities. At the time, the legendary investor divested stakes in major carriers including United, American, Southwest, and Delta, collectively valued at over $4 billion. Buffett had then articulated that the pandemic fundamentally altered consumer behavior and long-term travel patterns, necessitating the strategic withdrawal from the sector.

Beyond the airline re-entry, Berkshire Hathaway executed several other significant portfolio adjustments during the quarter. The Omaha-based firm reduced its holdings in energy giant Chevron while substantially increasing its relatively newer position in Alphabet, the parent company of Google, which now ranks as Berkshire’s seventh-largest holding. Additionally, a new, albeit smaller, stake was initiated in Macy’s, valued at approximately $55 million by the close of the first quarter. Concurrently, the conglomerate divested from a number of stocks, a move largely seen as an effort to unwind positions associated with departed investment lieutenant Todd Combs. Notable sales included Mastercard and Visa, which were among Combs’ initial purchases after joining Berkshire and mirrored significant holdings from his previous hedge fund, Castle Point Capital. Berkshire also fully exited its investment in Amazon, an equity long considered by some investors to be a Combs-driven strategic bet. Other companies from which Berkshire divested included UnitedHealth Group, Aon, Pool Corporation, Domino’s Pizza, and Charter Communications.

While Warren Buffett, now chairman, continues to actively engage in the company’s operations, CEO Greg Abel reportedly consults with him on investment strategies and capital allocation decisions, including recent share buybacks. Buffett has recently voiced his dissatisfaction with the current investing landscape, noting that Berkshire’s cash reserves are swelling to an unprecedented level, nearing $400 billion. He described the present environment as “not ideal” for effectively deploying Berkshire’s substantial capital.