Berkshire Exits Chevron, Doubles Down on Tech: Buffett Allocates to MSFT, GOOG, Adds Delta Airlines

Berkshire Hathaway's first-quarter 2026 portfolio actions, disclosed in the latest 13F filing, reveal a significant strategic shift under new CEO Greg Abel. The conglomerate sold approximately 8 billion dollars worth of Chevron shares despite oil prices reaching record highs, suggesting that Berkshire views energy as fully valued or as a lower-priority allocation going forward. Simultaneously, the company has boosted its position in Alphabet and taken a substantial new stake in DeltaHow much an option's price changes per $1 move in the underlying. Air Lines worth 2.6 billion dollars, its first major airline bet in years.

The tech allocation is particularly noteworthy. Berkshire increased its Microsoft holding materially in the first quarter, building on an already large position and signalling confidence in MSFT's competitive moatA sustainable competitive advantage that protects long-term returns on capital. and AI exposure. This aligns with broader market sentiment that mega-cap tech is the growth engine of the next cycle. The move stands in contrast to Berkshire's traditional profile as a value investor; the company is now chasing AI momentumThe empirical fact that winners keep winning over the medium term. alongside other institutional allocators.

The return to airlines through a DeltaHow much an option's price changes per $1 move in the underlying. purchase is a surprising reversal from Berkshire's complete exit from the sector following the 2020 pandemic. The move suggests either that Berkshire sees structural improvements in airline economics or that the cash-generative nature of the business is attractive in a higher-interest-rate environment. Delta's fuel costs are moderated by long-term hedges, and its revenue per available seat mile has improved materially since the pandemic.

Underlying these moves is Berkshire's substantial cash position, which has been reduced from its cyclical highs but remains substantial. The rotation from energy to tech and selective entry into cyclicals suggests that Abel is taking a more growth-oriented stance than Buffett's long-standing preference for defensive, cash-generative businesses. This shift will be closely watched by the market as an indicator of where sophisticated capital is rotating.