Greg Abel Just Quietly Dumped a Major Berkshire Holding. Here Is What Buffett’s Successor Is Buying Instead.

When Warren Buffett officially retired from day-to-day leadership at Berkshire Hathaway in late 2025, it marked the end of an era. Buffett transformed Berkshire into a trillion-dollar conglomerate with stakes in some of the world’s most dominant businesses. And it was clear from the start that filling his shoes would not be easy.

In January, Greg Abel took over as CEO of Berkshire. And now, investors are getting a clearer picture of how Abel plans to shape Berkshire’s portfolio in the post-Buffett era.

Abel sells legacy holdings and cuts exposure to bank stocks

One of the most notable shifts under Abel has been the continued reduction of stocks previously associated with Berkshire investment manager Todd Combs. Over the years, Combs helped manage portions of Berkshire’s massive equity portfolio and played a key role in several financial sector investments. But under Abel’s leadership, Berkshire has become increasingly selective.

One of the clearest examples of this is the fact that Abel significantly reduced the company’s Bank of America position. Berkshire had long viewed Bank of America as one of its most valuable financial holdings. This shift indicates that Abel probably no longer sees it as a bargain. And on a broader level, it’s clear that Abel wants less concentration in sectors vulnerable to economic slowdowns.

Abel buys international stocks and Berkshire shares instead

While Berkshire has been reducing exposure to some U.S. financial stocks, Abel has been leaning further into international investments — especially Japanese stocks.

At first, this move might seem contrary to his successor’s approach. Buffett repeatedly told investors in his shareholder letters not to bet against America. But Abel isn’t necessarily betting against America so much as diversifying and hedging his bets.

The U.S. stock market has seen record-high valuations. Buffett, meanwhile, has long emphasized the importance of seeking out value. And Abel’s move into Japanese stocks fits that approach, since many Japanese companies trade at lower valuations than comparable U.S. businesses.

Abel also repurchased about $234 million worth of Berkshire shares earlier this year, signaling confidence in the company and its long-term prospects.

Should investors follow Abel’s lead?

Abel’s recent portfolio moves are likely to spark a broader debate among American investors — is it time to reduce exposure to U.S. financial stocks and look overseas for better opportunities?

The answer depends on your goals and risk tolerance.

Large American banks still generate massive profits, and many continue to benefit from relatively stable consumer spending. Of course, the big question is whether spending will decline in the coming months. But abandoning financial stocks at this stage may be premature.

It’s also easy to see the appeal of international stocks. But it’s important to recognize that changes in currency rates and political instability could make international stocks a riskier prospect than expected.

Rather than follow Abel’s playbook directly, you may want to instead assess your portfolio and make sure you’re as diversified as you’d like to be. It may not be a bad idea to reduce your exposure to financial stocks if you’re heavily loaded in that area. And along these lines, if international stocks aren’t taking up much real estate in your portfolio, branching out could make sense.

At the end of the day, your goal should be to maintain a healthy mix of quality assets. It’s what made Buffett successful, and it’s what could help you meet your own financial goals, too.