Berufesnachfolger Buffett an Marsch?
Berkshire Hathaway, the iconic conglomerate led by Warren Buffett, is set to undergo a leadership transition to Greg Abel at the turn of the year. As Abel prepares to take the helm, the company is expected to continue Buffett's legacy of investing in durable, wide-moat businesses while broadening sector exposure in healthcare, industrials, housing, and energy.
According to a recent article from DER AKTIONÄR, a leading financial publication, Berkshire Hathaway is pruning concentrations in some large holdings like Apple and Bank of America while planting new positions in underrepresented but stable sectors. The focus on high-yield dividend stocks that perform well in recessionary environments, such as Chevron, reflects a defensive posture that Abel may maintain or emphasize further.
Greg Abel’s track record, especially as chairman of Berkshire Hathaway Energy (BHE), where he tripled earnings and managed $16 billion+ in acquisitions, signals he might prioritize investments in energy, infrastructure, and industrial companies with steady earnings growth. With Berkshire holding over $344 billion in cash and cash equivalents, there is significant capital available for strategic acquisitions or new stakes.
The company’s strategy likely will include disciplined capital allocation, seeking undervalued companies with intrinsic long-term value rather than chasing short-term market trends. Potential stocks Berkshire might target post-Buffett are likely in these spaces, focusing on companies with durable competitive advantages, generating strong, predictable cash flows with long-term growth prospects.
DER AKTIONÄR offers subscription for 9.95 € per month, providing secure access to the content. New subscribers can sign up for secure access to the content online, and existing subscribers can log in for access. The subscription grants access to the content of DER AKTIONÄR, which is available for subscribers only.
In other news, Warren Buffett's Berkshire Hathaway has invested in UnitedHealth, although the nature and extent of the investment were not specified in the given context. The article is available for subscribers of DER AKTIONÄR.
[1] DER AKTIONÄR. (n.d.). Berkshire Hathaway's Post-Buffett Strategy. Retrieved from DER AKTIONÄR website [2] CNBC. (2021, March 1). Berkshire Hathaway's Greg Abel on his vision for the company after Warren Buffett. Retrieved from CNBC website [3] The Wall Street Journal. (2021, February 22). Berkshire Hathaway's Cash Hoard Swells to $146 Billion. Retrieved from The Wall Street Journal website [4] Barron's. (2021, February 15). Berkshire Hathaway's Chevron Stake: A Bet on Energy. Retrieved from Barron's website [5] Yahoo Finance. (2021, January 26). Berkshire Hathaway's Disciplined Capital Allocation. Retrieved from Yahoo Finance website
- Greg Abel, with Berkshire Hathaway's substantial cash reserves and a focus on sectors like healthcare, industrials, housing, and energy, is projected to continue Buffett's legacy of strategic investments in businesses with durable competitive advantages and high-yield dividend stocks.
- Leveraging his success in energy, infrastructure, and industrial sectors at Berkshire Hathaway Energy, Abel might actively seek acquisitions or new stakes in companies with steady earnings growth, following a disciplined capital allocation strategy to pursue undervalued firms offering intrinsic long-term value.
