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Abel Sets Berkshire’s Core Stock List, Leaving Bank of America Off

The new CEO’s first shareholder letter signals limited activity in four named holdings, raising questions about bank exposure.

Overview

  • Greg Abel’s 18‑page letter identifies Apple, American Express, Coca‑Cola, and Moody’s as core holdings expected to compound over decades with limited trading.
  • Bank of America, despite ranking among Berkshire’s largest positions, was not designated a core holding.
  • Berkshire has reduced its Bank of America stake by roughly half in recent years after an investment that began with a 2011 preferred-and-warrants deal.
  • Bank of America shares trade at about 175% of tangible book value, placing the stock toward the higher end of its 10‑year valuation range.
  • Analysts view the omission, alongside Berkshire’s cash hoard and light recent buying, as a sign bank exposure could be pared, though no changes have been announced.