Portfolio reshuffle: Berkshire onboards Delta, triples Alphabet stake; sheds Visa, Mastercard, Domino's Pizza

In a sweeping portfolio reshuffle, Berkshire Hathaway completely exited 16 positions, including Amazon, Visa, Mastercard and UnitedHealth Group, while adding Delta Air Lines and Macy's as new holdings in the first quarter.

In addition, Berkshire more than tripled its share stake in Google parent Alphabet, which at $16.6 billion has become one of its largest common stock investments.

As part of a regulatory filing on Friday, the conglomerate disclosed a new $2.65 billion investment in Delta Air Lines. Berkshire also more than doubled its stake in The New York Times , and said it owned 9.4% of that company's stock.

Berkshire bought $15.94 billion and sold $24.09 billion of stocks in the January-to-March period, according to the conglomerate's stock holdings as of 31 March.

The portfolio rejig comes after Greg Abel took charge as Berkshire's chief executive to succeed legendary investor Warren Buffett.

Ready to board

Most stock sales were likely directed by Abel, who based on prior disclosures inherited most of Berkshire's equity portfolio including the portion belonging to Todd Combs, a Buffett protege who left in December to join JPMorgan Chase. Abel said in February he oversaw 94% of Berkshire's stock holdings, while investment manager Ted Weschler handled 6%.

The 6.1% stake in Delta, comprising 39.8 million shares, follows a post-pandemic rebound in air travel, though carriers are now struggling with rising fuel costs amid Middle East conflicts.

Berkshire once held an 11% stake in the Atlanta-based carrier, but sold that stake and similar percentage stakes in American Airlines, Southwest Airlines and United Airlines in April 2020, early in the pandemic.

Buffett, who remains Berkshire's chairman, said at the time "the world had changed" for the aviation industry. Delta is now regarded as among the best-run large US airlines. Its shares rose 3.3% in after-hours trading, likely reflecting what investors view as Berkshire's stamp of approval. Macy's shares, meanwhile, rose 6.3% after-hours following Berkshire's disclosure of a 3-million-share stake worth $55 million. The New York Times also rose after-hours.

Berkshire sheds weight

The largest stock positions that Berkshire exited, based on year-end holdings, included Visa, Mastercard, UnitedHealth, Domino's Pizza, insurance brokerage Aon and swimming pool supplies distributor Pool.

Berkshire also sold 35% of its Chevron shares, though the oil company remained Berkshire's fifth largest stock holding. Its share price rose 36% in the quarter as oil prices surged.

Friday's filing does not say which investments are overseen by Abel or Weschler.

Larger investments - led by Apple, American Express , Coca-Cola, Bank of America and Chevron--are generally Abel's.

Berkshire also owns dozens of businesses including the BNSF railroad, Geico car insurance, energy and manufacturing companies, and retail brands such as Brooks, Dairy Queen, Fruit of the Loom and See's.

— With inputs from Reuters