Greg Abel Just Sold 2.3 Million Shares of Amazon Stock. Here's Why That Could Be a Huge Mistake.
Amazon stock has been soaring.
Overview
It's the Greg Abel era at Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB). The new CEO is making his mark on the high-profile holding company, reshuffling the stock portfolio and acquiring new companies to add to the company's about 200 subsidiaries. Berkshire just closed on the acquisition of homebuilder Taylor Morrison for $6.8 billion in a bet on a housing rebound coming up soon.
He also closed out 16 of the portfolio's smallest stock positions, including Amazon (NASDAQ: AMZN). Berkshire bought Amazon stock in 2019, just before the COVID-19 pandemic, when e-commerce became a lifeline for global consumers, and before the artificial intelligence (AI) revolution turned its cloud business, Amazon Web Services (AWS), into a powerhouse in its own right. Former CEO and investing legend Warren Buffett had said, "I was too dumb to realize what was going to happen," but one of the company's investing managers eventually made the purchase.
Image source: Amazon.
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Originally published at www.fool.com.
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