New CEO Greg Abel Did Not List 2 of Berkshire Hathaway's Largest Equity Positions as "Core Holdings." Are They on the Chopping Block?

By Bram Berkowitz – Mar 7, 2026 at 2:05AM ESTKey PointsIn his letter to shareholders, new Berkshire Hathaway CEO Greg Abel listed four companies that he views as "core holdings" in the large equities portfolio.What's more interesting is the companies he didn't list.Some of the omissions included stocks in the portfolio's current top five holdings.New Berkshire Hathaway CEO Greg Abel launched his tenure as the company's new chief with an 18-page letter to shareholders that shed light on many details regarding how Abel plans to run the sprawling company, how Berkshire is currently performing, how it is positioned for the future, and other, perhaps more surprising comments about plans for Berkshire's massive $318 billion equities portfolio. For instance, Abel cited four key positions in Berkshire's portfolio -- Apple, American Express, Coca-Cola, and Moody's -- that he expects "will compound over decades" and will experience "limited activity," barring any fundamental changes in their long-term prospects. What's equally interesting is that Abel did not include two of Berkshire's current top-five positions in the group. Are these two stocks now on the chopping block? Image source: Getty Images. Bank of America -- 8.1% of portfolio One stock not mentioned by Abel as a "core holding" is Bank of America (BAC 1.71%), the second-largest bank by assets in the U.S. and the fourth-largest position in Berkshire's portfolio. While dumping many of its bank stocks during the pandemic, Berkshire loaded up on Bank of America, signaling that it would be its preferred large bank. While Buffett and Berkshire have a long history with the banking sector, they have also clearly soured on the industry. Berkshire has also cut its stake in Bank of America in half over the past few years. In 2011, following the Great Recession, Berkshire injected $5 billion of capital into Bank of America, in return for preferred stock and warrants that allowed it to acquire 700 million common shares at a price of $7.14 each in 2017, so Bank of America has undoubtedly been a terrific investment for Berkshire. ExpandNYSE: BACBank of AmericaToday's Change(-1.71%) $-0.84Current Price$48.69Key Data PointsMarket Cap$349BDay's Range$47.62 - $48.7052wk Range$33.06 - $57.55Volume1.6MAvg Vol40MDividend Yield2.80% However, Berkshire may not consider banks as much of a long-term trade as they once were. The sector has faced numerous issues since the Great Recession and has lagged the broader market on a pure returns basis. If Berkshire is concerned about a recession, which it seems to be based on its hoard of cash and lack of buying activity in recent years, it may also want to pare its bank holdings. Now, this doesn't mean Berkshire will necessarily eliminate Bank of America, but the fact that it didn't mention the company among its core holdings and has sold a significant amount definitely puts it on the chopping block. The stock trades at roughly 175% Bank of America's tangible book value, or net worth, which is toward the higher end of its 10-year valuation range, although not the highest, so Berkshire may eventually prefer to find banks with cheaper valuations. Chevron -- 6.5% The large U.S. oil and gas player Chevron (CVX +0.05%) is another stock Abel did not specifically name. This surprised me somewhat, considering that Berkshire has loaded up on U.S. energy assets in recent years and that Abel ran Berkshire Hathaway Energy. Based on its recent purchases, Berkshire seemed to believe that traditional fossil fuels, or power in general, would be quite valuable going forward, especially those produced by U.S.-based companies. Until concerns about the recent conflict between the U.S., Israel, and Iran, oil prices had fallen below $60 per barrel. Still, Chevron stock had performed relatively well, maintaining a strong balance sheet, despite taking on more debt to acquire Hess. Berkshire did actually sell quite a bit of Chevron back in 2022, but has only increased its position since the second quarter of 2023. ExpandNYSE: CVXChevronToday's Change(0.05%) $0.09Current Price$189.99Key Data PointsMarket Cap$379BDay's Range$188.15 - $192.4052wk Range$132.04 - $192.41Volume659KAvg Vol11MGross Margin14.66%Dividend Yield3.64% Chevron is doing many things that one would think the Berkshire team would approve of. The acquisition of Hess provides the company with a premier upstream portfolio that it believes will deliver industry-leading margins. Meanwhile, the company's net debt-to-cash flow ratio remains very solid at 1x. Chevron repurchased $12 billion of stock in 2025. Based on the company's first-quarter guide for this year, it will remain on a similar pace. Chevron's trailing-12-month dividend yield is also very strong, nearly 3.8%. Chevron is also arguably the best-positioned oil stock to benefit from changes in Venezuela, given its existing infrastructure there. The company has said it plans to triple production in March from December levels. Finally, the stock serves as a hedge against tensions in the Middle East because rising oil prices benefit it, so while I find it odd that Abel didn't include it as a core holding, I'm less likely to believe it is on the chopping block at this time.Read NextMar 4, 2026 •By Ryan VanzoWarren Buffett Bought 8 Million Shares of This Energy Stock in 2025's Q4: Here's Why 2026 Could Bring Huge ProfitsFeb 27, 2026 •By Daniel FoelberIs Chevron Stock Going to $200?Feb 24, 2026 •By Matt DiLalloChevron Is Negotiating for a Stake in a Massive Oilfield in Iraq. 2 Key Takeaways for Investors.Feb 24, 2026 •By Matt DiLallo3 High-Yield Energy Stocks to Buy Now and Hold ForeverFeb 23, 2026 •By Reuben Gregg Brewer3 High-Yield Energy Stocks to Buy in FebruaryFeb 22, 2026 •By Reuben Gregg BrewerA Friendlier Regulatory Environment May Be on the Horizon for These 2 Energy Stocks as the Trump Administration Rolls Back Greenhouse Gas RegulationAbout the AuthorBram Berkowitz is a contributing Motley Fool stock market analyst covering financials, technology, consumer goods, and macroeconomic trends.

Before The Motley Fool, Bram worked in equity research covering bank stocks and as a reporter for local publications. He holds FINRA Series 7 and 66 licenses, as well as a bachelor’s degree in business with a minor in economics from Syracuse University.TMFBramX@BramBerkoStocks MentionedChevronNYSE: CVX$189.99(+0.05%)+$0.09Berkshire HathawayNYSE: BRKA$747,800.01(-0.39%)-$2,949.89AppleNASDAQ: AAPL$257.80(-0.96%)-$2.49American ExpressNYSE: AXP$300.92(-2.05%)-$6.29Berkshire HathawayNYSE: BRKB$499.04(-0.27%)-$1.36Bank of AmericaNYSE: BAC$48.64(-1.80%)-$0.89Coca-ColaNYSE: KO$77.04(+0.01%)+$0.01Moody'sNYSE: MCO$472.03(+0.42%)+$1.98*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.