Stock of the Day

May 22, 2026

Berkshire Hathaway (BRK.B)

$504.67
+$2.02 (+0.4%)
Market Cap: $1.08T

About Berkshire Hathaway

Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The company provides property, casualty, life, accident, and health insurance and reinsurance; and operates railroad systems in North America. It also generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets. In addition, the company manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services. Further, it provides recreational vehicles, apparel and footwear products, jewelry, and custom picture framing products, as well as alkaline batteries; castings, forgings, fasteners/fastener systems, aerostructures, and precision components; and cobalt, nickel, and titanium alloys. Additionally, the company distributes televisions and information; franchises and services quick service restaurants; distributes electronic components; and offers logistics services, grocery and foodservice distribution services, and professional aviation training and shared aircraft ownership programs. It also retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and computers; jewelry, watches, crystal, china, stemware, flatware, gifts, and collectibles; kitchenware; and motorcycle clothing and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.

Berkshire Hathaway Bull Case

Here are some ways that investors could benefit from investing in Berkshire Hathaway:

  • The company is currently trading at $502.69, which is below its 52-week high of $537.74, suggesting potential upside as the stock trades at a discount to its recent peak while maintaining a low beta of 0.60 that indicates lower volatility compared to the broader market.
  • New CEO Greg Abel has demonstrated a decisive and aggressive investment strategy by significantly increasing the portfolio's position in Alphabet, an AI hyperscaler, to become the third-largest holding worth $37.8 billion, signaling strong conviction in the growth of Google Cloud which saw revenue increase 82% year-over-year.
  • Berkshire Hathaway is executing a large-scale share repurchase program, with predictions that 2026 buybacks will top $10 billion, which supports the stock price and returns capital to shareholders after a period of no buybacks in 2025.
  • The company is building a vertically integrated U.S. housing platform by increasing its stake in homebuilder Lennar to approximately 11% and adding D.R. Horton, leveraging its Clayton Homes unit and insurance businesses to create a comprehensive housing ecosystem that may be undervalued by the market.
  • The portfolio has been streamlined and consolidated under new leadership, with the number of holdings reduced from 42 to 29 in Q1 2026, allowing for a more focused investment strategy that exits underperforming or less strategic positions like Visa, Mastercard, and UnitedHealth Group.

Berkshire Hathaway Bear Case

Investors should be bearish about investing in Berkshire Hathaway for these reasons:

  • The company's major bet on Alphabet carries risk because the firm's Gemini AI model is perceived to be falling behind competitors like ChatGPT and Claude, with the release of Gemini 3.5 Pro delayed due to poor performance, which could impact the growth of Google Cloud that drives much of the AI-related revenue.
  • Alphabet, which now accounts for 12.6% of Berkshire's portfolio, faces a significant capital expenditure challenge with expected spending of $200 billion in 2026, meaning the company must generate enough AI revenue to justify this massive investment, creating uncertainty about the return on investment for this large position.
  • The company's new focus on homebuilders like Lennar is a contrarian bet in a challenging environment, as mortgage rates sit near 7.5% and builder sentiment is at multi-year lows, with Lennar's revenue declining for five consecutive quarters despite recent improvements.
  • The transition of leadership from Warren Buffett to Greg Abel introduces uncertainty, as Buffett stepped down as CEO at the end of 2025 and has now also stepped down as chairman, ending a 61-year era of leadership that delivered a 19.7% annual return, which may affect investor confidence in the company's future direction.
  • Berkshire Hathaway has exited several major positions in the payments and healthcare sectors, including selling out of Visa, Mastercard, and UnitedHealth Group, which could indicate a lack of confidence in these industries or a strategic shift that may not align with all investors' expectations for a diversified portfolio.

Willing and Abel: Berkshire's New CEO Makes Huge Portfolio Changes in Q1

Written By Leo Miller on 5/18/2026

Berkshire Hathaway Inc. name displayed over a trading room with stock charts and price monitors.

It only takes one look at Berkshire Hathaway’s (NYSE: BRK.B) latest 13F filing to know that someone new is in charge. Warren Buffett retired as CEO at the end of 2025, and Greg Abel succeeded him. Saying that Abel turned over Berkshire’s portfolio in Q1 2026 may be an understatement.

In reality, “consolidated” may be a better fit. In Q1, Berkshire completely sold out of over 15 positions and added just a few new ones. Overall, the number of total holdings fell from 42 to 29, creating a significantly more focused portfolio. These are the biggest moves from Berkshire Hathaway's Q1 2026 13F filing.

Behemoths Go to Zero: Berkshire Exits Several Mega-Caps

Notably, the world’s two largest players in the payments industry lost their spot in Berkshire’s portfolio. Visa (NYSE: V) and Mastercard (NYSE: MA), each of which Berkshire previously had +$2 billion positions in, saw their shares held fall to zero. This comes at a time when fears around how agentic AI commerce could affect traditional payment platforms have hurt both stocks.

Still, it is difficult to say that Berkshire decided to sell Visa and Mastercard based on this, given Berkshire’s very low exposure to the AI investment theme. Further pushing back on this idea is the fact that the position in American Express (NYSE: AXP) remains unchanged.

UnitedHealth Group (NYSE: UNH), the world’s largest health insurance company, also went to zero. This is somewhat odd, as Berkshire made headlines by investing in the company just three quarters ago. It is completely possible that Berkshire exited this position at a loss, with UNH shares down 11% from the end of Q2 2025 to the end of Q1 2026. Given the quick sale, it is interesting to consider whether Abel disagreed with the initial investment.

The other most notable sale was clear: Amazon.com (NASDAQ: AMZN). This seems to be an extension of what happened in the previous quarter, as Berkshire likely sees another Magnificent Seven firm as better positioned in the AI race. In Q4 2025, Berkshire drastically decreased its Amazon position by 77%, while holding its large position in Alphabet (NASDAQ: GOOGL). This quarter, Berkshire’s Amazon position went away, and Alphabet got much, much bigger.

Other notable exits included Domino’s Pizza (NASDAQ: DPZ), Pool (NASDAQ: POOL), and Charter Communications (NASDAQ: CHTR). Additionally, Berkshire dropped its stake in Mexican beer maker Constellation Brands (NYSE: STZ) by 95%.

Berkshire Doubles Down on Alphabet, New York Times

The shift in Berkshire's Alphabet position is the biggest story from a buying standpoint. Notably, Berkshire increased its position in Alphabet’s Class A shares (ticker symbol GOOGL) by 204%. Along with appreciation, this moved the value of the position up from around $5.6 billion at the end of Q4 to $15.6 billion at the end of Q1. Berkshire also didn’t stop there, buying $1.03 billion worth of Alphabet’s Class C shares (ticker symbol GOOG).

Over the recent past, it seems to have clearly come to the belief that Alphabet is the most well-positioned public AI hyperscaler. In the past six months, Alphabet has been beating the brakes off of the rest of the other top hyperscalers when it comes to returns.

The stock is up over 40%, with Amazon’s less than 15% return a distant second. Overall, Berkshire’s position in Alphabet was approximately $16.6 billion at the end of Q1, its seventh-largest holding.

However, Alphabet wasn’t the only huge buy. Berkshire also massively upped its stake in the New York Times (NYSE: NYT). Its shares held increased by 199%, and the value of the position rose from $351 million to $1.27 billion. It’s uncertain if a Q1 event significantly increased Berkshire’s conviction in NYT, or if it just needed to redeploy capital from sold positions. Either way, Berkshire got rewarded for this move after NYT’s latest earnings report. The company posted results that were genuinely strong, leading shares to soar over 8% in response.

Delta and Macy’s Enter the Fold

In terms of new holdings, Berkshire initiated positions in Delta Air Lines (NYSE: DAL) and Macy's (NYSE: M). Its DAL position is moderately large, worth $2.65 billion. Meanwhile, Macy’s is its third smallest holding at $55 million.

Notably, Delta shares fell as much as 16% in Q1. This came weeks after the beginning of the conflict in Iran. Jet fuel prices more than doubled, putting significant pressure on Delta shares. It is likely that Berkshire saw this as an opportunity to take advantage of that shock.

Meanwhile, Macy’s fell as much as 23% in Q1. Compared to its all-time high market cap near $24.5 billion in 2015, the retailer has lost around 80% of its value.

However, the company’s last earnings report was solid, beating on sales, adjusted earnings per share, and issuing better-than-expected 2026 sales guidance.

Abel’s Tenure Kicks off With Fireworks

Overall, Q1 2026 was Berkshire’s most notable 13F filing in quite some time, and Greg Abel made his presence felt. It will be interesting to see if Q1 marks the reset of Berkshire’s portfolio, and future changes will go back to being relatively minimal. On the other hand, it could be that Abel is just getting started, and other large changes will follow.

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