Warren Buffett left new Chief Executive Officer Greg Abel with a mountain of a portfolio to manage when he stepped down from the position at the end of 2025. Berkshire Hathaway's (BRK.A 0.30%) (BRK.B 0.17%) marketable equity portfolio is valued at about $320 billion as of this writing, and the business has about $354 billion of cash to deploy on top of that. Many of the holdings in the portfolio are positions established decades ago by Buffett and his vice chairman, Charlie Munger.
Many are waiting to see how Abel will handle the portfolio and whether he will make some big sales or purchases now that he's in charge. Recent Securities and Exchange Commission (SEC) filings show the first reported sale under Abel's leadership, and it's a stock Buffett initially bought more than 14 years ago.
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Is this Abel's first big move?
Berkshire Hathaway has to disclose sales or purchases of stocks for most companies in which it owns a stake of 10% or more within three days of any trade. One of those companies is DaVita (DVA 0.74%), which operates a network of dialysis clinics. Berkshire filed a form with the SEC on Feb. 2 disclosing the sale of 1.7 million shares of the stock at the end of January.
But before investors start worrying whether Abel is paring back on the company, it's important to understand Berkshire's relationship with DaVita. Last year, DaVita signed an agreement with Berkshire limiting its beneficial ownership to 45% of the business. The agreement allows DaVita to repurchase shares from Berkshire two days before it reports its quarterly earnings to maintain that 45% ownership stake.
The most recent DaVita share sale by Berkshire falls under that contract. DaVita disclosed the repurchase of $200 million worth of its shares since the end of December in its quarterly report filed on Feb. 2. That's the exact transaction reported by Berkshire.
NYSE: DVA
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That's unfortunate for Berkshire because DaVita had great earnings results to share with investors. Revenue climbed 10% and adjusted earnings per share (EPS) soared 52% year over year.
Many investors had worried that a bad flu season would tamp down results, and the impact of GLP-1 drugs on kidney disease and the need for dialysis treatment remains a concern for many. The recent earnings results may have tempered that wary sentiment.
Management is certainly optimistic. Its 2026 forecast calls for 45% growth in EPS for the full year and a 10% improvement in free cash flow. Even with the stock up 20% after the stellar report, the shares currently trade for just 9.3 times the midpoint of management's EPS projection, making it a value stock worth considering.
We're still waiting for Abel's first big move
Some investors had expected DaVita to be on Abel's chopping block due to the concerns that weighed on the stock all of last year. However, it looks more appealing after the most recent earnings report.
Another potential Buffett stock Abel could sell is Kraft Heinz (KHC 3.69%). Buffett oversaw the merger of Kraft Foods and H.J. Heinz in 2015 after taking the latter private in 2013. After the close of the deal, Berkshire ended up with nearly a 27% stake in the consumer staples business, and it has held on to its shares ever since.
That's despite comments from Buffett that the merger didn't work out as expected. Berkshire took a $3.8 billion write-down on its stake in the business last year.
But Abel is seemingly willing to part ways with the stock. SEC filings reveal the company registered to sell its 325,442,152 shares of Kraft Heinz, which is practically every share Berkshire owns.
NASDAQ: KHC
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Kraft Heinz is looking to reorganize and split the business into two entities: one focused on sauces and spreads and the other focused on staples like meat and cheese. Abel expressed disapproval of the plan to split the company, so it may be an opportunity for Berkshire to relinquish some shares.
Berkshire's Kraft Heinz position isn't subject to the same reporting requirements as the stocks it acquired on the open market. As a result, investors won't know if Abel is actually selling the stock until its first-quarter 13-F filing in mid-May. That will likely be our first glimpse at any major moves Abel is making with Berkshire's portfolio as the new CEO.
