Warren Buffett and Greg Abel attend Berkshire Hathaway’s annual shareholder meeting on May 4, 2024 in Omaha, Nebraska.
CNBC
Berkshire Hathaway has added a sizable stake in Delta Air Lines, marking the conglomerate’s return to the airline industry after a complete exit during the 2020 coronavirus pandemic.
The Omaha-based company has amassed a position worth more than $2.6 billion and was Delta Berkshire’s 14th largest holding at the end of March, according to new regulatory filings.
Warren Buffett surprised investors six years ago when he sold Berkshire’s entire portfolio of U.S. airline stocks, including more than $4 billion worth of stakes in United Airlines, American Airlines, Southwest Airlines and Delta Air Lines. Buffett said at the time that the pandemic had fundamentally changed consumer behavior and travel patterns.
Among Berkshire’s largest holdings, the company shed Chevron stock during the quarter, while significantly increasing its position in relatively new Alphabet stock. Google’s parent company is now Berkshire’s seventh largest holding company.
Arrow pointing outside zoom in icon
Berkshire also initiated a small position in Macy’s, valued at about $55 million at the end of the first quarter.
Todd Combs position rewind
Meanwhile, the conglomerate sold a large amount of stock last quarter, likely as part of an effort to unwind positions related to outgoing vice president Todd Combs.
The longtime investment manager and head of Geico left the company at the end of 2025 for JPMorgan. Mr. Combs was one of two portfolio managers hired by Mr. Buffett to help oversee Berkshire’s stock portfolio. Another investment manager, Ted Weschler, continues to oversee about 6% of the holdings.
Among the most notable sales were Mastercard and Visa, positions that reflected the first stocks Mr. Combs bought after joining Berkshire and major holdings of his former hedge fund, Castle Point Capital.
The conglomerate also exited Amazon completely after cutting positions late last year. The investment had long been viewed by some investors as a Combs-led bet.
Other stocks sold by Berkshire include UnitedHealth Group, Aon, Poole Corporation, Domino’s Pizza and Charter Communications.
not an ideal environment
Buffett has stepped down as CEO after more than 60 years at the helm, but remains chairman of the Omaha, Nebraska-based company and continues to work five days a week.
New CEO Greg Abel said he has been consulting with Buffett, 95, about investments and capital allocation, including the company’s recent resumption of stock buybacks in the first quarter.
Buffett recently admitted that he is frustrated with the investment environment as Berkshire’s cash holdings swell to a record nearly $400 billion.
“Berkshire is not an ideal neighborhood or environment in terms of putting money into Berkshire,” the former CEO said.
Never miss the most trusted news moments in business news when you choose CNBC as your preferred source on Google.
Source link
