Greg Abel Hasn’t Touched Berkshire’s Energy Holdings. Is That a Signal?
Since taking the reins at Berkshire Hathaway (BRKA +0.21%) (BRKB +0.31%), Greg Abel has been busy reshaping the conglomerate’s stock portfolio. He trimmed the enormous Apple stake, built a large position in Alphabet, and closed out more than a dozen smaller holdings.
Yet one corner of the empire he has left almost entirely alone is energy. Coming from a CEO who spent his career running Berkshire’s energy business, that may be a signal worth reading closely.
Image source: Getty Images.
Berkshire’s energy footprint is substantial, and Abel has not reduced it. Chevron remains a top-five holding at roughly 7% of the equity portfolio, and Berkshire has held on to its large Occidental Petroleum stake without trimming a share. If anything, the company has deepened the relationship, completing the purchase of Occidental’s OxyChem business earlier this year. On top of the stocks sits Berkshire Hathaway Energy, the wholly owned utility giant that Abel himself built into a powerhouse. While the technology portfolio got reshuffled, energy simply stood pat.
Today’s Change
(0.31%) $1.60
Current Price
$513.14
Key Data Points
Market Cap
Day’s Range
$510.82 – $520.66
52wk Range
$460.38 – $520.66
Volume
14.5K
Avg Vol
4.9M
Gross Margin
23.70%
Why all this might be a signal
Abel is an energy operator at his core, so leaving these bets alone, and even adding to them, hints at real conviction. The timing sharpens the point. Artificial intelligence (AI) is driving a surge in electricity demand, and Abel has said that roughly half of Berkshire Hathaway Energy’s businesses now serve AI-related power needs, with data centers already making up a growing share of the load in some of its markets. Seen that way, both the oil stocks and the utilities look less like leftovers and more like a deliberate bet on a world that will need vastly more energy. Abel may simply see durable, underappreciated value in the one industry he knows better than anyone.
I would not overstate the case, though. Inaction is not always a strategy. Warren Buffett built these positions, and Abel may be holding steady out of respect and prudence rather than sending a message. Oil is cyclical, and swings with prices and geopolitics, and enormous stakes like these are hard to move quickly, even if you wanted to. Reading deep meaning into a non-move is a good way to fool yourself.
Today’s Change
(-1.85%) $-3.65
Current Price
$193.18
Key Data Points
Market Cap
Day’s Range
$191.81 – $195.86
52wk Range
$146.49 – $214.71
Volume
43.7K
Avg Vol
9.1M
Gross Margin
17.86%
Dividend Yield
3.61%
The takeaway for investors
Still, I lean toward viewing this as a quiet signal. When a lifelong energy man becomes CEO and leaves the energy holdings untouched while overhauling nearly everything else, that steadiness says something. It suggests Abel is comfortable with Berkshire’s exposure to oil and, especially, to the electricity that will feed the AI era.
For investors, the lesson is to pay attention not just to what Berkshire changes, but to what it deliberately keeps. Energy, powered increasingly by AI demand, appears to be firmly in the keep column, and that is a clue about where the post-Buffett Berkshire sees lasting value.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, and Chevron. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
