Greg Abel Allocates Over 35% of Berkshire's Portfolio to Apple and American Express

Greg Abel, who took over as CEO of Berkshire Hathaway following Warren Buffett's retirement at the end of last year, is maintaining a core philosophy of portfolio concentration. In the first quarter, Abel kept more than 35%—amounting to $126.7 billion—of Berkshire's $359 billion investment portfolio tied up in just two longtime holdings: Apple and American Express.

While Warren Buffett had trimmed Berkshire's Apple stake by 75% in the nine quarters leading up to his retirement—partly due to Apple's trailing 12-month price-to-earnings ratio climbing from a historical 10-to-15 range to 38—Abel signaled confidence in his inaugural shareholder letter. He described the iPhone maker as a business positioned to compound over decades, supported by its high-margin subscription services and new device intelligence features.

American Express, held by Berkshire since 1991, remains the conglomerate's second-largest position. The financial services firm appeals to the portfolio due to its dual revenue model as both a merchant fee collector and a lender, its affluent clientele who tend to withstand economic downturns, and its massive dividend yield. Berkshire's cost basis in Amex sits at approximately $8.49 per share against a base annual payout of $3.80 per share, delivering an annual yield on cost of nearly 45%.

What to watch next: Monitor future Berkshire 13-F filings to see if Abel continues to hold these concentrated positions or adjusts weights amid shifting valuations.