Berkshire is about to reveal Buffett's latest trades. Which three stocks might he have sold?

Investment holding Berkshire Hathaway is preparing to disclose in mid-February what deals with shares it made in the fourth quarter of 2025. This report will be the last for Warren Buffett as CEO of the holding - since January, this post has been held by Greg Abel.

"Investors closely follow Berkshire's buying and selling every quarter. But given the company's leadership change, Buffett's loyal fans will be studying this report even more closely than usual, looking for clues about where the company's investment portfolio might be headed under new management," Morningstar writes.

Shortly after appointing a new CEO in January, Berkshire said it may get rid of shares in food giant Kraft Heinz, which have fallen 66% in 10 years. Abel is probably looking to reduce the company's portfolio in his first phase in his new post, said Morningstar senior analyst Greggory Warren. He and his colleagues examined Berkshire's portfolio and trades over the previous four quarters and named three other stocks in which the investment holding could cut its stake.

Berkshire has sold shares of the second-largest U.S. bank in each of the previous four quarters (up to and including the third quarter of 2025). Berkshire will likely continue to reduce its stake, but is unlikely to quickly exit the asset entirely, Morningstar notes. Bank of America is now one of Berkshire's top 3 largest positions, along with Apple and American Express.

Bank of America on January 14 reported fourth-quarter earnings better than Wall Street expected. Despite this, the stock fell 5% immediately after the report was released. Morningstar banking analyst Sean Dunlop sees the market's reaction as short-sighted: he expects the bank's fee and other income to grow next year. Dunlop raised his target price on Bank of America shares to $58 from $51, up about 5% from the close of trading on Feb. 4.

Berkshire Hathaway has held a stake in healthcare company DaVita since 2011, but last year reduced its position for three consecutive quarters. The investment holding now has about 45% stake in the company, which provides kidney dialysis services.

For DaVita, 2025 has been a challenging year due to declining patient treatment volumes and a cyberattack that leaked personal customer data. In addition, the stock was pressured by concerns that GLP-1 weight-loss drugs, which can slow the progression of kidney disease, could reduce dialysis demand over time, Morningstar notes. The company's stock price fell 24% last year.

Morningstar expects DaVita to be able to return to moderate revenue growth rates after a tough pandemic period. The popularity of GLP-1 drugs poses a threat to the company, but at the same time they also appear likely to improve survival rates for patients with chronic kidney disease, said analyst Julie Utterback. DaVita itself expects the proliferation of GLP-1 to have a roughly neutral impact on patient populations for at least the next decade.

Berkshire became a shareholder in the telecom company back in 2014, but has sold its shares three of the last four quarters. Charter Communications is losing subscribers, unable to compete with wireless carriers. Its stock has plummeted 40% in 2025.

Right now, they look severely undervalued, says Morningstar analyst Mike Hodel. He doesn't expect Charter to return to broadband customer growth anytime soon. Still, the company is capable of posting moderate revenue growth and generating stable cash flows, especially once it completes its rural network expansion, the analyst believes.

In the U.S., large investors like Berkshire Hathaway are required to disclose their equity investments at the end of each calendar quarter in a Form 13F report filed with the U.S. Securities and Exchange Commission (SEC). The filing is due 45 days from the end of the quarter. Therefore, by the time of disclosure, the data in the reports may no longer be current, notes The Wall Street Journal.

Nevertheless, investors and analysts always closely follow Berkshire's reports to understand the logic behind the actions of Buffett and his team. Berkshire's reports do not specify who made the decision on the deal - Buffett himself, his successor Greg Abel or other portfolio managers. Barron's wrote that as CEO, Buffett managed about 90% of Berkshire's equity portfolio.

This article was AI-translated and verified by a human editor