Greg Abel sold all 2.3 million Amazon shares in his first quarter as CEO of Berkshire Hathaway. The exit removed a stake that had been less than 1% of the portfolio most of the time, and it came as Amazon posted a stronger quarter and its stock climbed.
Berkshire's 2019 Amazon bet
Berkshire Hathaway bought Amazon stock in 2019, and Warren Buffett later said, "I was too dumb to realize what was going to happen," about the purchase. Abel has now unwound the position entirely, giving Berkshire shareholders a clean exit from a holding that never became a major piece of the portfolio.
2.3 million shares were sold, while Berkshire Hathaway was also reshaping its holdings in other ways. The company recently closed on the acquisition of Taylor Morrison for $6.8 billion and has about 200 subsidiaries, so the Amazon sale fits into a broader period of portfolio and operating changes under the new CEO.
Amazon's 20% revenue growth
20% year-over-year revenue growth in the second quarter helped explain why the sale stands out. Amazon also reported a 37% increase in AWS sales and a 63% increase in operating income, while Andy Jassy pointed to AWS's "very appealing accompanying free cash flow and return on invested capital."
26% after the report, Amazon stock added to the pressure on anyone trying to explain why Berkshire sold. The shares were up 43% from the middle of the first quarter as of the article's writing, which leaves Abel's decision looking like a full exit made before the latest run.
Greg Abel's first-quarter move
1 quarter as CEO is the only timing marker Berkshire has given for the sale, and that leaves the next question untouched: why unload the position just as Amazon's revenue, AWS sales, operating income, and share price were all moving higher? For Berkshire shareholders, the immediate fact is simple — the Amazon line is gone, and the portfolio now reflects Abel's first set of choices rather than Buffett's original 2019 purchase.
