Pomegra
Berkshire Hathaway's first 13F under CEO Greg Abel reveals a sweeping portfolio cleanup — 16 full exits including dividend stalwart Pool Corp, as capital rotates toward concentrated, high-conviction bets.
- Berkshire fully exited its ~8.3% stake in Pool Corp (POOL), worth roughly $650 million, in Q1 2026.
- The filing marks the first 13F without Warren Buffett's name — Abel cut holdings from 42 to 29 positions in a single quarter.
- Berkshire tripled its Alphabet stake and committed $2.65 billion to Delta Air Lines while remaining a net equity seller.
Lead
Berkshire Hathaway filed its first quarterly 13F under Chief Executive Greg Abel on May 15, 2026, revealing the most sweeping single-quarter portfolio restructuring in the conglomerate's recent history — 16 full position exits totaling roughly $8.1 billion in net equity sales, including the complete liquidation of its stake in Pool Corporation (POOL), the world's largest wholesale distributor of swimming pool supplies. The exit ended a years-long position that had peaked at an 8.3% ownership stake valued near $650 million entering 2026, marking the end of one of Berkshire's more unusual forays into specialty distribution.What Happened
The Q1 2026 13F, covering the quarter ended March 31, showed Berkshire exiting 16 positions in their entirety — a list that included Visa, Mastercard, UnitedHealth Group, Amazon, Domino's Pizza, Aon, and a cluster of smaller holdings spanning media, advertising, and consumer names. Pool Corp stood out as the sole dividend-growth stock among the full exits, given its unbroken record of annual dividend increases and a recently raised quarterly payout of $1.30 per share — a 4% increase approved by the board in April 2026.
The exit came after Pool Corp's stock had fallen nearly 70% from its all-time highs, weighed down by a sustained demand correction in the residential pool market. New pool construction, which surged during the pandemic, collapsed to roughly 58,000 units in 2025 — a fraction of the COVID-era peak — as consumer spending tightened and the backlog of pandemic-driven installation projects cleared. Revenue and profit growth turned negative, and the stock's depressed multiple no longer offered the margin of safety Berkshire's capital allocation framework demands.
Strategic Context
The May 15 filing is historically significant: it is the first 13F in more than 60 years in which Warren Buffett's name does not appear on the ledger. Buffett formally stepped down as CEO at the close of 2025, transitioning to executive chairman, with Abel assuming operational control of the Omaha, Nebraska conglomerate.
Abel's opening portfolio statement is a dramatic compression. With Berkshire's holdings dropping from 42 to 29 positions in a single quarter, the new leadership signals a preference for concentrated, high-conviction exposure over the broader diversification that characterized some of Buffett's later additions. The Warren Buffett portfolio model — patient accumulation of businesses with durable competitive advantages and reliable income — remains the framework, but the tolerance for marginal or cyclically exposed positions appears lower under Abel's stewardship.
Berkshire purchased $3.18 billion in equities during the quarter against $4.68 billion in sales, extending its streak as a net seller to ten consecutive quarters. The cash and short-term Treasury position, which stood at a record $334 billion at year-end 2025, remains the primary strategic reserve pending opportunities Abel judges to meet Berkshire's return threshold.
Buffett Picks 2026 — What Abel Is Building
Against the backdrop of aggressive selling, two significant new commitments emerged from the Berkshire sells stock narrative. Abel tripled the conglomerate's stake in Alphabet (GOOGL), the largest single addition by market value, reflecting conviction in the company's AI-linked advertising and cloud infrastructure revenues. Berkshire also initiated a $2.65 billion position in Delta Air Lines (DAL), a capital-intensive, dividend-paying carrier — a departure that suggests Abel is willing to revisit sectors Buffett had retreated from.
Apple (AAPL) — still the portfolio's dominant holding — was left untouched, ending the sustained reduction in that position that had defined Berkshire's equity activity since 2023. The decision to hold rather than trim Apple signals that Abel views the current price as aligned with intrinsic value, even as the firm continues to sell elsewhere.Market Reaction
Pool Corp shares were trading near multi-year lows at the time of the Q1 period, and the confirmation of Berkshire's full exit added modest incremental selling pressure on the stock. Despite cyclically depressed conditions, Pool Corp's own board moved in April to expand its share repurchase authorization by $329 million, bringing the total program to $600 million, signaling management confidence in long-term value even as institutional holders step away. The company's ROIC of 17.7% continues to exceed its WACC of 8.7%, suggesting the structural moat remains intact even if near-term earnings are compressed.
Berkshire Hathaway Class B shares (BRK.B) held steady in the days following the May 15 filing, with markets interpreting the portfolio pruning as disciplined capital management rather than a defensive retreat.Outlook
Greg Abel's first quarter at the helm of the Berkshire Hathaway portfolio delivers an unambiguous signal: the era of accumulating long-tail positions is over. The conglomerate is moving toward a smaller, more concentrated set of equity stakes — oriented around businesses with scale, digital infrastructure exposure, and clear return trajectories — while maintaining an outsized Treasury position as dry powder. Pool Corp exits as a casualty of both cyclical timing and a shift in what Berkshire's new management regards as worthy of the firm's capital. Whether Abel deploys the cash reserve into equities, private businesses, or further Treasury holdings through the balance of 2026 will define the next chapter of the world's most closely watched investment portfolio.
