Greg Abel Deploys Billions in First Quarter, Including $9.7 Billion OxyChem Purchase
The moves mark a possible shift in Berkshire’s capital allocation toward larger, concentrated investments and cross-border insurance deals
Overview
- Greg Abel, in his first quarter as CEO, completed three large investments that together deployed billions of dollars of Berkshire capital.
- Berkshire closed the OxyChem acquisition in January for $9.7 billion in cash, a deal struck near a cyclical trough in chemicals and priced at about eight times 2025 EBITDA.
- The company paid about $1.8 billion for a roughly 2.5% stake in Tokio Marine and agreed a quota‑share reinsurance arrangement through its National Indemnity unit that shifts some underwriting risk to Berkshire.
- Mid‑May filings show Berkshire trimmed many U.S. equity holdings, disclosed fewer positions, built a near‑record cash balance, and added more concentrated public stakes such as in Delta and Alphabet.
- Public filings understate activity because 13F rules omit foreign, private and intra‑quarter trades, and current reporting leaves open who within Berkshire made specific portfolio decisions and how results will play out over time.