Under the leadership of its new CEO, Greg Abel, Berkshire Hathaway has undergone a significant transformation of its equity holdings during the first quarter. This strategic overhaul saw the addition of new companies, substantial increases in existing investments, and the divestment of numerous positions previously managed by portfolio manager Todd Combs. The changes signal a new direction for the conglomerate’s investment strategy as it transitions under Abel’s stewardship.

The most striking move in the first quarter was Berkshire’s dramatic increase in its stake in Alphabet, the parent company of Google. The number of Alphabet shares held by Berkshire surged by 224%, elevating the tech giant to become the company’s seventh-largest equity holding with a market value of $16.6 billion at the close of the quarter. This significant investment, likely made with the endorsement or suggestion of Warren Buffett, has already seen a positive return, with Alphabet’s stock rallying 38% since the end of Q1.

In a notable departure from recent investment patterns, Berkshire Hathaway has reintroduced airline stocks into its portfolio with the addition of Delta Air Lines. This marks the first airline investment since Warren Buffett divested all such holdings in early 2020 at the onset of the COVID-19 pandemic. The company also added a new position in department store chain Macy’s and significantly increased its stake in The New York Times, tripling its holdings. Conversely, the portfolio saw substantial cuts, with Chevron experiencing the largest reduction by market value, shedding over $8 billion in shares. A wide array of other stocks, including Visa, Mastercard, and Amazon.com, were also significantly reduced or eliminated entirely, reflecting a broad restructuring of the investment portfolio.