Berkshire's Portfolio Shake-Up: Delta and Macy's Return Mystify

Berkshire Hathaway's latest 13F filing has sent ripples through the investment community, revealing a dramatic reduction in equity holdings and two surprising new positions: Delta Air Lines and Macy's. The moves, disclosed in the first-quarter report, underscore a shifting landscape at the conglomerate as new CEO Greg Abel takes the reins of the investment portfolio.

The Great Unloading

The most striking aspect of the filing is the sharp decline in the number of stocks held. The Wall Street Journal had anticipated that Abel would sell many or all of the positions previously managed by Todd Combs, who departed for JPMorgan late last year. The filing confirms that expectation, with dozens of smaller holdings eliminated. This consolidation aligns with Abel's mandate to streamline Berkshire's equity portfolio, focusing on core bets that align with the company's long-term philosophy.

However, the filing leaves lingering mysteries. Warren Buffett, still chairman and coming into the office five days a week, told CNBC's Becky Quick in late March that he continues to make investment calls but will not do anything Abel deems "wrong." The dynamic suggests a collaborative transition, but the reintroduction of Delta Air Lines—a sector Buffett famously criticized—raises eyebrows.

Delta's Third Act

Delta's reappearance in Berkshire's portfolio after a six-year exile is puzzling. Buffett's disdain for airlines is well-documented; in 2008, he suggested a "farsighted capitalist" should have shot down Orville Wright. His forays into the sector—a troubled US Airways investment in 1989 and a money-losing airline bet in 2016—ended poorly. So why return to Delta now?

One possibility is that the decision was Abel's, not Buffett's. Abel may see value in Delta's post-pandemic recovery, improved balance sheet, and operational efficiencies. Alternatively, the position could be a short-term trade or a hedge. Without official commentary, investors are left to speculate.

Macy's: A Retail Bet

The inclusion of Macy's is equally intriguing. The department store chain has struggled against e-commerce rivals, but its real estate holdings and potential for turnaround might appeal to value-oriented investors. Berkshire's move could signal a bet on physical retail's resilience or an opportunistic play on undervalued assets.

Yet, the lack of disclosure on who initiated these trades fuels uncertainty. Historically, Buffett handled large positions while portfolio managers handled smaller ones. With Combs gone and Abel at the helm, the decision-making process is opaque. Abel's background in energy and operations, not stock picking, adds another layer of complexity.

Market Impact and Investor Sentiment

Berkshire's portfolio moves are closely watched by market participants. The reduction in holdings may be interpreted as a cautious stance, while the new positions could be seen as contrarian bets. Shares of Delta and Macy's saw modest gains following the filing, suggesting some investors view Berkshire's endorsement as a positive signal.

However, the broader context includes a White House security incident that briefly rattled markets. On the same day as the filing, a shooting near the White House—the third such incident near President Trump in a month—raised security concerns but did not directly impact Berkshire.

Key Takeaways

1. Berkshire Hathaway significantly reduced its equity portfolio in Q1 2026, shedding many small positions formerly managed by Todd Combs.
2. New holdings in Delta Air Lines and Macy's surprise investors given Buffett's historical aversion to airlines and retail struggles.
3. The transition to CEO Greg Abel is underway, but investment decision-making remains opaque, with Buffett still involved.

Sources: CNBC - Lingering Mysteries from Berkshire's Portfolio Update | CNBC - Reports of Shots Fired Near White House