Warren Buffett’s Berkshire Hathaway is poised for a significant change next year, as Buffett steps down from his role as CEO. Greg Abel, the current vice chairman of Berkshire’s non-insurance operations, will take over the reins. While the day-to-day operations of the company are expected to remain largely the same, there is speculation about potential adjustments to Berkshire’s investment portfolio under Abel’s leadership.
Three stocks have emerged as potential candidates for inclusion in Berkshire’s holdings: Microsoft, Enbridge, and Nvidia. Microsoft, with its strong fundamentals, diverse growth opportunities, and global brand recognition, could be an attractive option for Abel. The software giant’s leadership in artificial intelligence and cloud computing, along with the ubiquity of its office software, makes it a compelling long-term investment.
Enbridge, a leading Canadian oil and gas company, might also catch Abel’s attention due to his Canadian roots.
Abel’s potential stock picks
The company’s stability, predictability, and attractive dividend yield align with the qualities that Buffett has traditionally valued in investments.
Nvidia, a dominant player in the AI chip market, represents a shift towards technology-driven investments. With Apple potentially losing its edge due to AI rollout issues and delayed iPhone features, Nvidia’s strong fundamentals and innovative prowess could make it a suitable replacement as Berkshire’s top holding. These three stocks fit the Berkshire mold of strong fundamentals, stability, and growth potential.
Their inclusion in the company’s portfolio would reflect a balance between traditional value investing and a recognition of the evolving technological landscape. As Abel takes the helm, investors will be closely watching to see how he navigates Berkshire’s investment strategy. The addition of Microsoft, Enbridge, or Nvidia to the portfolio could signal a new chapter in the company’s storied history.
