Berkshire Hathaway disclosed on Friday a set of portfolio moves that include a new $2.65 billion equity investment in Delta Air Lines and a modest stake in Macy's, alongside widespread reductions and sales of smaller stock holdings.
According to the regulatory filing, Berkshire pared back or exited a number of positions, notably selling holdings in Amazon.com and UnitedHealth Group. The filing also shows that in the first quarter the company disposed of multibillion-dollar stakes in payment networks Visa and Mastercard, and sold a sizable holding in insurance broker Aon.
Company disclosures link these portfolio adjustments to personnel changes on the investment team. The rebalancing follows the recent departure of an investment manager who had a role helping the company allocate its cash, and it comes during a period of executive transition at Berkshire.
The first quarter covered in the filing was the initial reporting period since Greg Abel took over as Berkshire's chief executive. It was also the first full quarter after Todd Combs left his investment role at Berkshire to join JPMorgan Chase to lead a new investment initiative.
Context and implications
The disclosure captures several distinct moves: a large new position in an airline operator, a small buy in a department store chain, and multiple sales of stakes in major financial and healthcare-related companies. The filing does not attach commentary about the reasons for the purchases or sales beyond noting recent personnel changes on the investment team.
- Delta Air Lines - New $2.65 billion investment added to the portfolio.
- Macy's - A small stake was acquired.
- Sales and exits - Positions in Amazon.com and UnitedHealth Group were sold; multibillion-dollar stakes in Visa and Mastercard, and a sizable holding in Aon, were also exited in the first quarter.
The filing does not provide further detail on timing beyond indicating the moves were reported for the first-quarter period, nor does it quantify the precise sizes of the positions that were reduced except for those described as multibillion-dollar stakes or the stated $2.65 billion Delta purchase.
Personnel notes
This quarter marks reporting under new leadership at Berkshire. Greg Abel succeeded the prior chief executive, and Todd Combs, previously a key investment lieutenant, left to join JPMorgan Chase where he will lead an investment effort. The departure of an investment manager who had assisted with deploying Berkshire's cash is noted in connection with the recent portfolio turnover.
The regulatory filing frames the portfolio changes and executive movements without attributing specific rationale for each trade beyond the personnel shifts detailed in the disclosure.