For the first time in six decades, Warren Buffett is no longer making the final decision on where Berkshire Hathaway's (BRK.A 0.46%) (BRK.B 0.38%) capital is deployed. That responsibility now falls on the shoulders of his successor as Berkshire's CEO, Greg Abel.
Don't expect Abel to make radically different moves than Buffett would. However, he isn't a clone of the legendary investor.
No one knows for sure how Abel will use Berkshire's cash stockpile of nearly $382 billion this year. But I predict he's likely to buy the following three stocks in 2026.
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1. Alphabet
I found it interesting that Buffett has long regretted not investing in Google's parent company, Alphabet (GOOG 1.68%) (GOOGL 1.66%), but finally bought the stock after announcing that he was stepping down as CEO. My hunch is that Abel might have had some influence on the purchase of the internet giant.
Even if I'm totally off base with this supposition, I could easily envision Abel increasing Berkshire's stake in Alphabet in 2026. He probably likes that the company's multiple business moats and its ability to generate strong free cash flow.
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Abel is also more likely than Buffett, in my view, to invest in technologies that could shape the future. Alphabet stands at the center of three of them: artificial intelligence (AI), autonomous vehicles (AVs), and quantum computing.
This doesn't mean I think Abel will embark on a buying spree of AI, AV, and quantum computing stocks. However, Alphabet provides a stable underlying business that aligns well with Buffett's tried-and-true approach, while offering legitimate ways to potentially profit from game-changing technologies. I predict Abel will recognize and capitalize on this opportunity in the new year.
2. Dominion Energy
Abel served as CEO of MidAmerican Energy before Berkshire Hathaway acquired a controlling interest and renamed it Berkshire Hathaway Energy. I predict that he will use some of Berkshire's cash in 2026 to buy a stake in another energy provider. Dominion Energy (D +1.01%) appears to be a strong candidate, in my opinion.
Dominion provides electrical power to three states – Virginia, North Carolina, and South Carolina. It's the kind of business that no one would have been surprised if Buffett himself had bought in the past.
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Buffett always loved dividends, even if he never opted for Berkshire to initiate a dividend program. Dominion's forward dividend yield tops 4.5%. He preferred companies that dominated their markets. As a regulated monopoly, Dominion easily checks off that box.
Believe it or not, though, Dominion shares something in common with Alphabet. It offers Abel a way to invest in AI, albeit indirectly. Dominion's home state of Virginia is the world's hot spot for data centers that host AI systems. The data center market is a key growth driver for the company – a fact that I'm confident Abel is aware of.
3. Mitsui
During Berkshire Hathaway's annual shareholder meeting in May 2025, Buffett and Abel spoke positively about the company's stakes in five Japanese conglomerates. Buffett said, "It's too bad that Berkshire has gotten as big as it is because we love that position and I'd like it to be a lot larger." Abel followed up those comments by saying, " I absolutely agree, Warren."
I predict that Abel will indeed increase Berkshire's ownership this year in at least one of the Japanese companies. Mitsui (MITSF 3.74%) (MITSY 3.10%) is the most likely candidate for the simple reason that Berkshire's stake in the company is only 7.6%, compared to a minimum of 8.5% for the other four.
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Why do Buffett and Abel like these Japanese companies so much? Buffett explained in Berkshire's that they "follow shareholder-friendly policies that are much superior to those customarily practiced in the U.S." Their valuations also remain attractive, with Mitsui's shares trading at a price-to-earnings ratio of 15.3.
Abel indicated in the shareholder meeting that Berkshire Hathaway and the Japanese companies could "do big things" together globally over the long term. I wouldn't be surprised if 2026 marks the beginning of some of those joint initiatives.
