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Buffett Issues Final Valuation Warning as Berkshire Handover to Greg Abel Nears

Buffett cautions that large-cap valuations have grown stretched heading into 2026.

Overview

  • Warren Buffett will retire as Berkshire Hathaway CEO at year-end, with Greg Abel set to take over in January.
  • Berkshire’s marketable equity portfolio stands at about $315 billion, which analysts note would top $500 billion without recent sales.
  • Buffett was a net seller for 12 straight quarters, totaling nearly $184 billion in net stock sales over the past three years.
  • Major trims include a 73% reduction in Apple, a 44% cut to Bank of America, and a 26% sale of Chevron, with dozens of positions fully exited.
  • Newer moves have been modest, featuring positions in Chubb, Alphabet, and Sirius XM, and a 36% increase in Occidental Petroleum.