Warren Buffett's Hand-Picked Successor, Greg Abel, Has 30% of Berkshire Hathaway's Portfolio Invested in Apple and Alphabet. But There's an Under-the-Radar Berkshire Stock That Is My Top Pick for July.
2026-07-16 09:35
•Dave Kovaleski •The Motley Fool
••• ••••••• Axe Capital view
Berkshire’s Big Tech Bet vs. A Quiet Defensive Gem
Greg Abel’s Berkshire leans heavily on Apple and Alphabet, but Kroger’s steady dividends and undervaluation make it my top stock for July.
Greg Abel is steering Berkshire Hathaway with a heavy tilt toward Apple and Alphabet, combining for 30% of the portfolio. It’s a classic tech concentration play—solid, but risky if growth stumbles or regulation bites. For South African investors, this reminds me of the temptation to crowd into a few flashy JSE darlings like Naspers or Prosus. But if you want to balance risk, look beyond the obvious. Kroger, a US-based retailer already near year lows with a nearly 20-year streak of dividend hikes, offers a more defensive profile. It’s underpriced with a PEG ratio under 1, implying good value for growth. Though not listed locally, the lesson is applicable: reliable income and undervaluation can outperform in volatile markets. The rand’s fluctuations might limit direct exposure, but stocks like Shoprite or Woolworths share this steady consumer play. If inflation eases or consumer confidence slips again, Kroger’s dependable earnings and dividends make it a safe harbor. But if the US market rallies sharply or consumer spending booms anew, Kroger’s cautious stance might lag. this is just my opinion and not financial advice
Avoid adding to heavily skewed tech positions like Prosus for now. Instead, watch stable retailers such as Shoprite and Woolworths for steady dividends and possible undervaluation. Hedging rand exposure against USD/ZAR should also be considered with rising global rate uncertainties.
- USD/ZAR
- Shoprite
- US consumer spending rebounds sharply, lifting growth stocks over defensive ones
- Rand weakness undermining returns for foreign-exposed stocks
7/10
Greg Abel, Berkshire Hathaway's new CEO, has concentrated 30% of the portfolio in Apple and Alphabet. However, the article recommends Kroger as a defensive stock pick for July, trading near 52-week lows with strong dividend growth and potential 24% upside according to Wall Street analysts.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Dave Kovaleski
Categories: Rates, Equities, Capital Returns
Tickers: BRK.A, BRK.B, AAPL, GOOG, GOOGM, GOOGN, KR
Sentiment: Positive - Mentioned as the primary investment vehicle with significant concentration in tech stocks (Apple and Alphabet at 30%), but no direct recommendation or criticism of the company itself. Noted as a major holding (part of 30% concentration) but presented as part of a potentially overweighted tech position rather than as an individual recommendation.
Keywords: Berkshire Hathaway, Greg Abel, defensive stocks, market correction, dividend stocks, portfolio diversification
Insights:
- BRK.A: Neutral: Mentioned as the primary investment vehicle with significant concentration in tech stocks (Apple and Alphabet at 30%), but no direct recommendation or criticism of the company itself.
- BRK.B: Neutral: Mentioned as the primary investment vehicle with significant concentration in tech stocks (Apple and Alphabet at 30%), but no direct recommendation or criticism of the company itself.
- AAPL: Neutral: Noted as a major holding (part of 30% concentration) but presented as part of a potentially overweighted tech position rather than as an individual recommendation.