Berkshire Hathaway's New CEO Breaks Buffett's Key Investing Rule

Greg Abel's 'forever' holding in Apple violates Warren Buffett's focus on value

Apr. 14, 2026 at 9:06am

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A highly detailed, photorealistic studio shot of a single, polished metal apple sculpture floating on a clean, monochromatic background, dramatically lit from the side to create deep shadows. The minimalist composition and premium materials symbolize the tension between Berkshire Hathaway's value investing approach and the high valuation of its Apple stake.Berkshire Hathaway's new leadership grapples with the premium valuation of one of its 'forever' holdings, Apple.Omaha Today

As Warren Buffett stepped down as CEO of Berkshire Hathaway in 2026, his successor Greg Abel vowed to continue Buffett's investing principles. However, one of Abel's 'forever' holdings, Apple, is currently violating what Buffett considered his most important rule - finding good value. Apple's stock is trading at 33 times trailing 12-month earnings, far above the 10-15 times range Buffett targeted when he first invested. While Apple has a loyal customer base and strong buyback program, its growth has stalled, and the valuation no longer fits Buffett's value-focused approach. Berkshire sold around 75% of its Apple stake in the nine quarters leading up to Buffett's retirement, and the new CEO may continue trimming the position.

Why it matters

This case highlights the tension between Berkshire's new leadership and Warren Buffett's legendary investing philosophy. Buffett was unwavering in his focus on value, even if a company had strong fundamentals. His successor, Greg Abel, sees Apple as a long-term compounder, but the current valuation may force him to diverge from Buffett's playbook. This could signal a shift in Berkshire's investment approach under new management.

The details

In his final years as Berkshire Hathaway CEO, Warren Buffett sold around 75% of the company's stake in Apple, even though the tech giant was one of his 'forever' holdings. Buffett was always adamant about finding good value, and Apple's current valuation of 33 times trailing 12-month earnings is far above the 10-15 times range he targeted when first investing. While Apple has a loyal customer base and the largest share buyback program on the planet, its growth has stalled in recent years, diminishing the value proposition that initially attracted Buffett. Berkshire's new CEO, Greg Abel, has vowed to employ the same investing principles that made Buffett successful, but he sees Apple as a long-term compounder despite the high valuation. This could lead to further reductions in Berkshire's Apple position under Abel's leadership.

  • In 2024, Buffett outlined eight holdings he felt were indefinite, including Apple.
  • In the nine quarters leading up to Buffett's departure as CEO in 2026, Berkshire sold approximately 75% of its Apple stake (687.6 million shares).

The players

Warren Buffett

The former CEO of Berkshire Hathaway, known as the 'Oracle of Omaha', who built the company into a conglomerate with a focus on value investing over his more than 50-year tenure.

Greg Abel

The new CEO of Berkshire Hathaway, who has vowed to continue Buffett's investing principles, but is breaking from Buffett's focus on value by holding onto Apple despite its high valuation.

Apple

The technology company that is one of Berkshire Hathaway's 'forever' holdings, despite its stock trading at a much higher valuation than what Buffett typically targeted.

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What they’re saying

“Although Apple offers the largest share repurchase program on the planet -- $841 billion spent to buy back its stock since 2013 -- and has an exceptionally loyal customer base, its stock isn't cheap.”

— Sean Williams, Author

“While Abel sees Apple as a multidecade compounder, it doesn't alter the fact that it's historically pricey. Buffett may not be steering the ship on a day-to-day basis any longer, but it wouldn't be a surprise if Berkshire's Apple position shrank further in the coming quarters, courtesy of its new leader, Greg Abel.”

— Sean Williams, Author

What’s next

Investors will be closely watching Berkshire Hathaway's future moves with its Apple stake to see if Greg Abel continues to diverge from Warren Buffett's value-focused approach under the new leadership.

The takeaway

This case highlights the challenge Berkshire Hathaway's new CEO Greg Abel faces in balancing Buffett's legendary value investing principles with his own long-term vision for the company's holdings. Abel's willingness to hold onto Apple despite its high valuation could signal a shift in Berkshire's investment strategy under new management.