How Buffett's Retirement Is Reshaping Berkshire Hathaway's Investment Landscape

Warren Buffett’s departure as Berkshire Hathaway’s chief executive marked a historic turning point for the investment conglomerate. Since stepping down on December 31, 2025, the Oracle of Omaha’s exit has set in motion significant shifts within the company’s $319 billion investment portfolio—changes that were arguably inevitable but nonetheless dramatic. As successor Greg Abel takes the helm of the trillion-dollar enterprise that Buffett helped build with late partner Charlie Munger, one of the most striking developments involves the reshuffling of the company’s largest holdings.

The Decline of Apple from Berkshire’s Most Prized Asset

For more than a decade, Apple stood as the undisputed crown jewel of Berkshire’s investment portfolio. The tech giant appealed to Buffett for multiple reasons: its fiercely loyal customer base, premium pricing power, dominant smartphone market position, and most notably, its aggressive share buyback program. Since 2013, Apple has repurchased over $841 billion in stock and retired more than 44% of its outstanding shares—a strategy that Buffett deeply appreciated for its ability to enhance earnings per share.

Yet the Buffett news that dominated recent quarters tells a different story. According to SEC Form 13F filings, Buffett orchestrated a significant retreat from Apple between October 2023 and his December 2025 retirement. The scale was breathtaking: Berkshire sold 687.6 million Apple shares—a 75% reduction in its position. While Buffett attributed some of this selling to tax optimization strategies at Berkshire’s May 2024 shareholder meeting, the magnitude suggests a deeper strategic shift.

As of February 19, 2026, Apple accounted for just $59.39 billion of Berkshire’s invested assets. This stark decline underscores a critical point: the valuation no longer aligned with Buffett’s value-investing principles. When Berkshire began accumulating Apple in early 2016, the stock traded at 10-15 times trailing twelve-month earnings. Today, Apple commands a price-to-earnings multiple near 33—a historically elevated level given the weakness in device sales from 2022 through 2024. With new CEO Greg Abel sharing Buffett’s disciplined approach to valuations, further Apple sales are likely in 2026.

American Express Positioned to Become Berkshire’s New Top Holding

The beneficiary of Berkshire’s Apple exit appears to be American Express. As of mid-February 2026, Amex holdings totaled $51.95 billion—within striking distance of Apple’s $59.39 billion stake. The contrast to just three years ago is stunning: in April 2023, Apple’s $151.3 billion position dwarfed Amex’s modest $24.7 billion holding. Yet the trajectory is unmistakable.

What’s particularly telling is that Buffett showed zero interest in trimming Berkshire’s 151.6 million American Express shares. In his final shareholder letter, Buffett specifically designated American Express as an “indefinite” holding—signaling his intention for Berkshire to maintain the position indefinitely. Under Greg Abel’s stewardship, that commitment appears unchanged, virtually guaranteeing that Amex will claim the number-one position sometime during 2026.

Why American Express Offers Enduring Value

American Express possesses qualities that align perfectly with Buffett’s investment philosophy. The company operates a unique business model often described as “double-dipping”: it functions simultaneously as the third-largest credit card payment processor in the United States and as a direct lender earning interest income and annual cardholder fees.

Beyond this dual revenue stream, Amex has cultivated a deliberately affluent customer base. High-net-worth individuals and premium cardholders demonstrate greater resilience during economic downturns, making them less likely to alter spending patterns or default on payments. This structural advantage historically allows American Express to recover faster than peers following recessions, aligning with the broader economic resilience Berkshire expects to characterize the U.S. economy.

The dividend story further reinforces Buffett’s reasoning for maintaining this indefinite holding. Berkshire’s cost basis in American Express shares stands at just $8.49 per share—a reflection of continuous ownership for 35 years. With Amex distributing $3.28 annually per share, Berkshire’s yield on cost approaches an extraordinary 39%. Put simply: the dividend income alone enables Berkshire to recoup its entire original $1.3 billion investment in American Express roughly every three years.

This combination of business resilience, customer quality, and exceptional dividend returns explains why Buffett viewed American Express as a permanent fixture in Berkshire’s portfolio, and why that stance is unlikely to change under Abel’s leadership.