Berkshire Hathaway’s Evolving Empire: A Decade of Strategic Shifts and Market Mastery

Berkshire Hathaway, the investment giant helmed by Warren Buffett, has long been synonymous with disciplined value investing, but its holdings over the past five years reveal a company adapting to shifting markets while staying true to its core principles. From its $11.6 billion acquisition of Alleghany Corporation in 2022 to its $2.36 billion stake in BYD, Berkshire’s evolution underscores a blend of old-world conservatism and modern ambition.

The Acquisitions: Building an Infrastructure Powerhouse

Berkshire’s most significant moves since 2020 have centered on consolidating control over energy and infrastructure assets. In October 2024, the company finalized full ownership of subsidiaries like AltaLink (electric transmission), PacifiCorp (electric distribution), and Kern River Pipeline, transitioning from 92% to 100% stakes in these critical North American energy assets. This consolidation, worth over $10 billion, reflects Buffett’s belief in the enduring value of hard assets and infrastructure.

The 2022 acquisition of Alleghany Corporation, which included Kentucky Trailer and Cavalier Homes, added both insurance expertise and manufacturing capabilities to Berkshire’s portfolio. By 2024, Berkshire also secured full ownership of Pilot Flying J, a $8.2 billion bet on trucking and retail infrastructure. These moves solidified Berkshire’s position as a $500 billion conglomerate with sprawling operations in energy, transportation, and insurance.

The Stock Portfolio: From Apple to Asia

While acquisitions anchor Berkshire’s physical assets, its stock holdings reveal a portfolio in flux. As of May 2025, Apple Inc. remained Berkshire’s largest single investment at $60.27 billion, though its stake had dipped 15.9% year-to-date. Buffett’s long-term faith in Apple contrasts with newer bets, such as a 4.9% stake in BYD (valued at $2.36 billion), a Chinese electric vehicle (EV) leader. BYD’s stock surged 733.9% over five years, making it a critical driver of Berkshire’s outperformance of the S&P 500.

Berkshire also expanded into Asia through $5.39 billion investments in Japan’s five largest trading houses (Itochu, Mitsubishi, etc.), signaling a strategic pivot toward global diversification. Meanwhile, the company doubled its stake in Domino’s Pizza and acquired a $1 billion position in Constellation Brands (owner of Corona), highlighting a renewed focus on consumer brands with global reach.

The Sell-offs and Strategic Shifts

Not all bets paid off. Berkshire reduced its Bank of America stake by 15% in late 2024 and exited Ulta Beauty entirely, signaling skepticism about overvalued sectors. These moves reflect Buffett’s mantra of “selling high” to reinvest in undervalued opportunities.

The Cash Hoard and Leadership Transition

By March 2025, Berkshire’s cash reserves hit a record $347.68 billion, a historic high. This liquidity has fueled speculation about future acquisitions, though Buffett has remained cautious. The first-quarter 2025 results saw net income drop 63.8% to $4.6 billion due to insurance losses, yet core operations like railroad BNSF (up 6.2% in earnings) and energy subsidiaries remained steady.

The Road Ahead: Abel’s Berkshire

With Buffett stepping down as CEO in 2026, the baton passes to Greg Abel, who has emphasized continuity but hinted at bolder moves. Abel’s focus on deploying Berkshire’s cash while maintaining its insurance and energy backbone could redefine the conglomerate.

Conclusion: A Legacy of Adaptation

Berkshire Hathaway’s evolution since 2020 mirrors the broader market’s shifts—from energy dominance to EV innovation and global diversification. Its BYD stake, which contributed over 10% of its total portfolio gains in 2024, and its $347 billion cash war chest position it to capitalize on future opportunities.

While Apple’s struggles in 2025 (down 15.9% YTD) and the S&P 500’s -3% return underscore market volatility, Berkshire’s stock rose 19.3% year-to-date, outperforming peers. This resilience stems not from any single holding but from a portfolio constructed with Buffett’s timeless principles: concentrated bets on durable businesses, cash preservation, and patience.

As Abel takes the helm, the question remains: Can a new era of Berkshire maintain its legendary growth while deploying its cash trove? The answer may lie in whether it stays true to its roots—or embraces a new era of risk.

Andrew Ross Sorkin is a pseudonym for this analysis. Actual data sources include Berkshire’s SEC filings, shareholder letters, and financial reports.