TL;DR

Berkshire Hathaway's Q1 2026 13F filing -- its first under new CEO Greg Abel -- disclosed a surprise $2.6 billion stake in Delta Air Lines (DAL), making Berkshire the airline's second-largest institutional shareholder at 6.1% of outstanding shares. Berkshire also tripled its position in Alphabet to roughly $17 billion while fully exiting Amazon, Visa, Mastercard, and UnitedHealth, among 16 total position closures. Delta shares rose 3.2% in after-hours trading following the disclosure.

What Happened

On Friday, May 15, Berkshire Hathaway filed its quarterly 13F report with the SEC for the period ended March 31, 2026. The filing is the first to reflect portfolio decisions made under Greg Abel, who became CEO after Warren Buffett stepped down earlier this year. Buffett, 95, remains chairman and still consults Abel on major capital allocation decisions.

The headline move was Berkshire's purchase of approximately 39.8 million shares of Delta Air Lines, valued at $2.647 billion at the end of Q1. That makes Delta Berkshire's 14th-largest equity holding. The position represents 6.1% of Delta's shares outstanding and was simultaneously disclosed in a separate Schedule 13G passive-investment filing with the SEC.

On the buying side, Berkshire also expanded its Alphabet (Google parent) position to roughly $17 billion, now its seventh-largest holding. A small new position in Macy's was also initiated, valued at approximately $55 million.

On the selling side, Berkshire exited 16 positions entirely during Q1. Full sales included Amazon, Visa, Mastercard, UnitedHealth Group, Aon, Pool Corporation, Domino's Pizza, and Charter Communications. Many of these positions had been built or maintained by former investment lieutenant Todd Combs, who departed Berkshire for JPMorgan at the end of 2025. Berkshire also trimmed its Chevron stake during the quarter.

Why Markets Are Paying Attention

Berkshire's return to airlines is notable because of how firmly it exited the sector. In May 2020, Buffett sold Berkshire's entire $4-plus billion equity portfolio of US airlines -- including prior stakes in Delta, United, American, and Southwest -- citing the view that the pandemic had fundamentally changed air travel demand. That exit became one of the most-discussed investment decisions of the COVID era.

The decision to re-enter the sector, and specifically to choose Delta as the vehicle, signals a meaningful reassessment of the airline industry's long-term outlook. Delta has consistently been the most profitable US carrier in recent years and has posted strong margins relative to peers.

The Alphabet position tripling is also significant given Berkshire's historically conservative stance toward technology stocks. Increasing that bet to $17 billion ranks it among Berkshire's largest positions and reflects a view that Alphabet's AI-driven revenue streams, search monopoly, and cloud growth justify a higher valuation.

The exit from Amazon and the full sales of Visa and Mastercard -- positions closely associated with Combs -- suggest Abel is methodically consolidating the portfolio around his own conviction ideas rather than maintaining inherited positions.

For more context on the broader macro environment these moves were made in, see ChartDojo's earlier coverage: Treasury yields hit year highs as inflation and Warsh concerns pressured markets.

Implications for Stock and Futures Traders

Delta Air Lines (DAL): The Berkshire endorsement carries significant weight for the stock. DAL rose 3.2% to $72.45 in Friday after-hours trading. A sustained move above recent resistance levels in the low $70s would confirm follow-through buying when US markets open Monday. A 6.1% stake from Berkshire effectively puts a high-profile floor under the stock and may attract additional institutional interest.

Broader airline sector: United Airlines (UAL), American Airlines (AAL), and Southwest (LUW) are likely to get a modest sympathy lift, though Berkshire's exclusive focus on Delta signals a company-specific thesis rather than a broad sector call.

Alphabet (GOOGL): Berkshire's decision to triple its stake adds credibility to bulls who argue Alphabet's current valuation underestimates its AI and cloud upside. The stock has lagged Meta and Nvidia in 2026 and could see renewed institutional interest following this signal.

Stocks that were exited (AMZN, MA, V, UNH): These names may face modest selling pressure early Monday as market participants interpret the Berkshire exit as a signal. The effect is unlikely to be severe -- these are all large-cap liquid stocks -- but the narrative shift is worth monitoring.

Potential Positives vs Negatives

Positives:

  • Berkshire's DAL stake provides a strong institutional endorsement of the airline's business model and near-term earnings durability.
  • The Alphabet position increase may reignite interest in large-cap tech stocks that have lagged the AI rally in 2026.
  • Portfolio consolidation under Abel could reduce noise in Berkshire's holdings and increase clarity for long-term investors tracking the conglomerate.
  • Resumed buybacks in Q1 signal Abel's confidence in Berkshire's intrinsic value.

Negatives:

  • The 13F reports positions as of March 31, 2026. Berkshire may have since reduced or exited the Delta position without any disclosure obligation until the next filing.
  • Delta's sensitivity to fuel prices is a real risk, particularly given oil's sharp rise to $109 per barrel in recent weeks -- a macro headwind not present when the Q1 position was built. For context on oil's trajectory, see ChartDojo's earlier oil flash post.
  • If the Warsh-led Fed tightens financial conditions further, consumer discretionary spending on travel could soften, which would weigh on airline earnings.
  • The exit of Visa and Mastercard removes Berkshire's exposure to two of the most resilient business models in finance. Some long-term Berkshire shareholders may view that as a misstep.

What Could Happen From Here

Base case: Delta opens sharply higher Monday, likely 3-5% above Friday's close, as the Berkshire disclosure generates a broad positive sentiment wave for the stock. The rally fades into a consolidation range in the $70-75 zone as traders weigh the oil-price headwind against the endorsement signal. Alphabet also sees a modest lift, reinforcing its recovery trend. The sold names (AMZN, V, MA) see mild pressure but no disorderly moves. This scenario is confirmed if DAL holds gains above $71 through Tuesday's session.

Upside case: Berkshire's re-entry into airlines triggers a broader rerating of the sector. Institutional buyers follow Berkshire's lead and accumulate Delta and peer carriers. DAL pushes toward the $80 range within two to three weeks. Alphabet's triple-stake endorsement adds fuel to a rotation into large-cap tech as a value play. This scenario gains traction if Delta's management provides positive guidance commentary at upcoming investor events and if oil prices ease from recent highs. It would be invalidated if oil holds above $110 or if the Fed signals additional rate hikes in May.

Downside case: The initial DAL pop fades as traders realize Berkshire's position reflects Q1 pricing and may not reflect current conviction. Oil's continued strength erodes airline margin projections. The macro backdrop -- higher yields, hawkish Fed rhetoric under Warsh -- weighs on all risk assets including DAL and GOOGL. In this scenario DAL gives back the after-hours gain within one to two sessions and tests support near $67. This path is confirmed if broader equity indices resume their recent selloff early next week.

What Traders Should Watch Next

  • DAL opening print Monday: Whether Delta sustains its after-hours gain is the first confirmation signal for the base case.
  • Airline sector peers (UAL, AAL, LUV): Sympathy moves will clarify if this is sector rotation or a company-specific reaction.
  • Oil prices (Brent, WTI): Any further push above $110 materially changes the airline earnings math and could cap DAL's rally.
  • Alphabet (GOOGL) next week: Watch for institutional follow-through buying after the Berkshire endorsement.
  • Any additional Berkshire 13G/D filings: If Berkshire crosses key ownership thresholds in Delta, a follow-on disclosure would amplify the signal.
  • Fed communications: With Kevin Warsh now in charge, any early public remarks on rates or policy direction will set the tone for risk assets broadly.

FAQ

What is a 13F filing? A 13F is a quarterly disclosure required by the SEC for institutional investment managers with more than $100 million in assets. It lists all equity positions held at the end of the quarter. Berkshire's 13F covers positions as of March 31, 2026, and does not reflect any changes made after that date.

Why did Berkshire exit Visa and Mastercard? Both positions were closely associated with Todd Combs, Berkshire's former investment lieutenant who left for JPMorgan at the end of 2025. CEO Greg Abel appears to be methodically unwinding inherited positions that do not reflect his own investment convictions as he reshapes the portfolio.

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Sources

Header image source: pexels by Panumas Nikhomkhai. License: PEXELS.