Observed Signal · Feb 21, 2026 · Portfolio Update · Source: CNBC Investing · Impact: 3/5 · Sentiment: Neutral
Berkshire Sells Big as Buffett Steps Down
Berkshire Hathaway was a net seller of publicly traded stocks in Warren Buffett's final quarter as CEO. The company sold Apple shares in each of the last three quarters (and in seven of the past nine), reducing its Apple position by more than 75% since summer 2023, though Apple remained Berkshire's largest equity stake at $60.3 billion. Berkshire also cut its Amazon holding to $478 million after selling 7.7 million shares (a 77% reduction) and reduced its Bank of America position substantially. The firm increased its Chevron stake by 6.6% (adding about $1.2 billion) and boosted Chubb by 9.3% (about $910 million). Berkshire added a small New York Times position valued at $395 million (about a 3.1% stake). Separately, Berkshire utility PacifiCorp agreed to pay $575 million to resolve U.S. government wildfire claims and says it has settled nearly 90% of known claims for over $2.2 billion.
Berkshire's sizable portfolio reallocations (notably large reductions in Apple and Amazon positions) and a major utility legal settlement ($575M plus >$2.2B of settled claims) affect large-cap market allocations, investor sentiment, and utility liability exposure, but do not represent an industry-wide structural change.
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Key Takeaways & Evidence Grounding
- Berkshire Hathaway was a net seller of stocks in Warren Buffett's final quarter as CEO.
- Berkshire sold Apple shares in each of the last three quarters and in seven of the past nine, reducing the position by more than 75% since summer 2023; Apple remained Berkshire's largest equity stake at $60.3 billion.
- Berkshire's Amazon stake was reduced to $478 million after selling 7.7 million shares during the fourth quarter, a 77% cut from prior valuation.
- Berkshire increased its Chevron stake by 6.6% in Q4, adding about $1.2 billion and bringing the stake's value to almost $24 billion; it also increased Chubb by 9.3%, adding about $910 million (34.2 million shares valued at almost $11.4 billion).
- PacifiCorp agreed to pay $575 million to resolve U.S. government claims over six wildfires in 2020 and 2022; PacifiCorp says it has settled nearly 90% of known claims for more than $2.2 billion and continues to deny liability.
Connected Companies & Entities
9 Entities mappedRelated Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Berkshire Increases Alphabet Stake by 83%
Berkshire Hathaway raised its stake in Alphabet by 83% in Q2, growing to roughly 106 million shares valued at about $37.8 billion as of June 30. The holding includes a June-announced $10 billion investment tied to Alphabet's financing of AI infrastructure. Apple remained Berkshire’s largest equity holding (~$66 billion), followed by American Express (~$51.3 billion) and Alphabet. Berkshire bought $23.5 billion of stocks and sold $3.7 billion in Q2, ending a 14-quarter streak of net selling and reducing cash reserves from $380.2 billion to $364.7 billion. Berkshire fully exited its position in Constellation Brands and adjusted stakes in Delta Air Lines, Macy’s, Lennar, D.R. Horton and several financial and industrial firms. Warren Buffett remains chairman and says the Alphabet position originated with him; Greg Abel is running capital allocation as CEO.
Berkshire Hathaway Shares Plunge Amid Disappointing Earnings Report
Berkshire Hathaway reported a 29% year-over-year decline in fourth-quarter operating earnings to $10.2 billion, driven mainly by weakness in its insurance operations where underwriting profits fell 54% to $1.56 billion. Class A shares dropped about 4.8% after the release. Greg Abel, who became CEO at the start of 2026, provided limited signs of immediate strategic change in his first shareholder communication, reiterating a preference for reinvestment and opportunistic buybacks rather than initiating a dividend. Berkshire ended 2025 with more than $370 billion in cash and Treasury holdings, prompting some investor surprise at the firm’s stated unwillingness to pay dividends. Analysts were mixed: KBW expressed disappointment over the lack of dividend, while UBS highlighted Berkshire’s defensive characteristics and outlined operational priorities at BNSF and Geico for 2026–2027.
Berkshire earnings could show shares are cheap
Berkshire Hathaway’s second-quarter results, released August 8, 2026, are expected to reveal a sharp acceleration in share repurchases and stronger operating earnings, according to market analysts. UBS analyst Brian Meredith estimates Berkshire may have bought back roughly $8.5 billion of stock between April 15 and July 14, a major increase from $235 million in Q1. UBS also estimates the shares trade about an 8% discount to intrinsic value. The report will be the second under new CEO Greg Abel and follows robust results from peers in property-and-casualty insurance and railroads. UBS forecasts improved performance at BNSF and a strong quarter at Berkshire Hathaway Energy, while expecting narrower underwriting margins at Geico as it prioritizes growth. The quarter included closing the Taylor Morrison acquisition and a $10 billion investment in Alphabet to support AI development.
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