Key insights
- Berkshire Hathaway's Q1 portfolio adjustments, including a significant investment in Delta and exits from Amazon, Visa, and Mastercard, signal a shift in investment strategy under new leadership. While the moves reflect Berkshire's specific allocation decisions, the reduction in tech and financial holdings could indicate a cautious outlook on these sectors, potentially influencing broader market sentiment, albeit weakly.
Investing.com -- Berkshire Hathaway (NYSE:BRK.A) disclosed Friday a new $2.65 billion investment in Delta Air Lines (NYSE:DAL) and a small stake in Macy’s (NYSE:M), while selling many smaller stock holdings including positions in Amazon.com (NASDAQ:AMZN) and UnitedHealth Group (NYSE:UNH).
The portfolio changes follow the recent departure of an investment manager who helped Berkshire Chairman Warren Buffett invest the company’s cash.
According to a regulatory filing, Berkshire also exited multibillion-dollar stakes in card networks Visa (NYSE:V) and Mastercard (NYSE:MA) in the first quarter, along with a sizable stake in insurance brokerage Aon (NYSE:AON).
The quarter marked the first since Greg Abel succeeded Buffett as Berkshire’s chief executive, and the first full quarter since Buffett protege Todd Combs left to join JPMorgan Chase (NYSE:JPM) to lead a new investment initiative.
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