Prediction: Warren Buffett's Successor, Greg Abel, Will Dispose of One of Berkshire Hathaway's Largest Holdings
The Motley Fool analysts predict that Greg Abel, who took over as CEO of Berkshire Hathaway from Warren Buffett on December 31, will dispose of Bank of America, one of the company's largest holdings. This prediction is based on Berkshire Hathaway's recent selling activity, having divested nearly 549.5 million shares of Bank of America since June 30, 2024, representing 53% of its stake. The analysts cite Bank of America's current valuation (trading at a 59% premium to book value, compared to a 62% discount when Buffett initially invested), its disproportionate negative impact from the Federal Reserve's six interest rate cuts between September 2024 and December 2025, and its exclusion from both Buffett's list of "indefinite" holdings and Abel's list of "compound over decades" holdings as key reasons for the anticipated divestment.
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