Berkshire Hathaway's second-quarter 13F filing, due Friday, is expected to provide investors with a clearer view of how CEO Greg Abel is reshaping the conglomerate's equity portfolio following Warren Buffett's departure. This will be only the second quarterly disclosure under Abel's leadership, coming after an active first quarter when Berkshire became a net buyer of equities for the first time in years.
While Berkshire's quarterly report already revealed over $23 billion in stock purchases during Q2, the 13F will detail where much of that capital was deployed. According to Barron's estimates, Berkshire had accumulated roughly 58 million Alphabet shares before the latest purchase, and the additional investment increased that holding to about 86 million shares. Further buying during the quarter could have pushed the stake close to 100 million shares by the end of June.
If that estimate holds, Alphabet would be worth nearly $35 billion within Berkshire's portfolio, placing it alongside Coca-Cola as one of the conglomerate's largest equity holdings behind Apple and American Express. This aligns with the shift toward net buying that marked Abel's early tenure.
Beyond Alphabet, Berkshire disclosed purchases of nearly $2 billion in Japanese insurer Tokio Marine and over $1 billion in additional investments in the Japanese trading companies it already holds. The quarterly report also showed more than $23 billion in total equity purchases, leaving roughly $7 billion of investments yet to be identified in the upcoming 13F.
Potential new positions
Investors will be watching for entirely new positions after Berkshire initiated stakes in Delta Air Lines, Macy's, and Alphabet during Q1—the first major portfolio additions under Abel. Speculation has centered on whether Berkshire could have initiated a position in Microsoft after the stock weakened during Q2. Barron's noted that Berkshire's undisclosed purchases are likely concentrated within what the company classifies as commercial, industrial, and other businesses, based on changes disclosed in its quarterly report.
Portfolio reshaping continues
Although Berkshire sold more than $3 billion of stocks in Q2, that was a much slower pace than the over $24 billion sold in Q1. Investors will scrutinize whether Abel continued trimming legacy holdings. Kraft Heinz remains a closely watched position after Abel acknowledged in his shareholder letter that "our investment in Kraft Heinz has been disappointing," adding that "our return has been well short of adequate," signaling further reductions are possible.
Constellation Brands is another holding that could disappear entirely after Berkshire cut roughly 95% of its position in the previous quarter. Smaller holdings such as Jefferies Financial could also face additional reductions. At the same time, Abel has emphasized long-term conviction in core investments, writing that "Apple, American Express, Coca-Cola, and Moody's" are businesses Berkshire understands well and expects "will compound over decades."
The 13F will offer a window into how Abel balances that conviction with a more active approach to portfolio management. As some of Buffett's classic holdings remain under review, the filing could signal whether the new CEO is willing to make bolder changes than his predecessor.
Market participants will also compare Berkshire's moves with broader trends, such as the recent AI-driven market volatility that has affected tech stocks. The disclosure of any new tech positions could be seen as a bet on continued growth in that sector.
Overall, the 13F is expected to confirm that Abel is putting his own stamp on Berkshire's portfolio, with a focus on large-cap tech and international diversification, while gradually reducing some legacy consumer stakes.
This article is for informational purposes only and does not constitute financial advice.
