Prediction: Warren Buffett's Successor, Greg Abel, Will Dispose of One of Berkshire Hathaway's Largest Holdings

Greg Abel, Berkshire Hathaway's new CEO as of December 31, is likely to continue unwinding the company's Bank of America position, following the pattern established under Warren Buffett. BRK.A and BRK.B have already sold 549.5 million BAC shares since June 2024—representing 53% of the original stake.

The selling pressure stems from valuation concerns. BAC reached a 59% premium to book value, a level that triggered the exit. Additionally, the Federal Reserve's rate cuts have reduced the bank's interest rate sensitivity, diminishing a key earnings driver that made the position attractive when rates were rising.

The massive unwind marks one of Berkshire's largest portfolio adjustments in recent years. With roughly half the position already liquidated, Abel's continuation of the sale would signal his willingness to act on valuation discipline even for legacy Buffett holdings. BAC remains one of Berkshire's largest equity positions despite the reduction.