Greg Abel, who took over as CEO of Berkshire Hathaway at the start of 2026 from 95-year-old Warren Buffett, just made a $2.6 billion bet on Delta Airlines — and individual investors can use the exact same strategy to build long-term wealth. Abel purchased 39.8 million shares of Delta, making it Berkshire's 14th largest holding by the end of March 2026.
This move is particularly striking because Berkshire completely exited all airline stocks just six years ago in 2020, selling more than $4 billion worth of United, American, Southwest, and Delta shares. Now Abel is betting big on airlines again — and his timing could teach everyday investors a valuable lesson about contrarian investing.
## How the Berkshire Strategy Works
The Berkshire approach under both Buffett and now Abel follows a simple but powerful formula: buy quality companies when they're temporarily out of favor, hold for years, and let compound growth do the heavy lifting. Delta stock jumped more than 3% on Monday when the Berkshire holdings were announced, showing how institutional buying can validate undervalued opportunities.
Abel didn't just buy Delta. He also increased Berkshire's Alphabet stake by 224%, making it the portfolio's seventh-largest holding. Meanwhile, he sold payment companies Mastercard and Visa, completed a full exit from Amazon, and trimmed other positions including UnitedHealth Group, Aon, Pool Corporation, Domino's Pizza, and Charter Communications.
This demonstrates the core Berkshire principle: concentrate on your best ideas while cutting positions that no longer meet your criteria. For individual investors, this translates to building focused portfolios of 10-20 quality stocks rather than owning hundreds of random positions.
## Who Can Use This Strategy
Any American investor with at least $1,000 to start can implement a simplified version of the Berkshire approach. You don't need millions — you need discipline and patience. Here are the basic requirements:
• Age 25-65 with at least 10 years until retirement
• Ability to invest consistently for 5+ years without touching the money
• Willingness to buy when others are selling (contrarian mindset)
• Access to a low-cost brokerage account with commission-free stock trades
• Time to research 10-15 companies thoroughly rather than chasing daily market moves
## Here's How to Build Your Own Berkshire-Style Portfolio
Step 1: Open a low-cost brokerage account if you don't have one. Schwab, Fidelity, and Vanguard all offer commission-free stock trades and low account minimums.
Step 2: Start with $500-1,000 per month in automatic investments. This matches the systematic approach Berkshire uses, buying consistently regardless of short-term market swings.
Step 3: Focus on 10-15 large, profitable companies in different sectors. Abel's current moves show he likes airlines (Delta), technology (Alphabet), and consumer companies. You might add healthcare, utilities, and financial stocks for balance.
Step 4: Buy when everyone else is selling. Abel returned to airlines after six years because they were cheap again. Look for quality companies hit by temporary problems, not permanent declines.
Step 5: Hold for 5+ years minimum. Berkshire's average holding period is measured in decades, not quarters. This approach minimizes taxes and maximizes compound growth.
Step 6: Reinvest all dividends automatically. Most brokerages offer this free service, turning your quarterly payments into more shares without any action required.
## Real-World Example
Sarah, 35, earns $75,000 as a nurse in Texas. She opens a Schwab account and commits to investing $800 monthly using Abel's approach. Instead of buying Delta directly, she builds a 12-stock portfolio including companies like Johnson & Johnson (healthcare), Microsoft (technology), and Coca-Cola (consumer goods).
After 20 years of consistent $800 monthly investments earning 8% annually, Sarah's account grows to approximately $471,000. The key isn't picking perfect stocks — it's systematic investing in quality companies over decades, exactly like Berkshire does with billions.
Sarah's total contributions over 20 years: $192,000. Her investment gains: $279,000. That's the power of compound growth combined with patient, systematic investing.
## Why Act Now
Abel's moves at Berkshire's annual meeting earlier in May 2026 signal that experienced value investors see opportunities in today's market. With Todd Combs leaving the company at the end of 2025 to join JPMorgan, Abel is putting his own stamp on the portfolio — and individual investors can benefit from following his lead.
The current market environment offers the same opportunities Abel is exploiting: quality companies temporarily out of favor, allowing patient investors to buy at reasonable prices. Starting systematic investing now, rather than waiting for "perfect" market conditions, ensures you capture both current opportunities and future growth.
Remember, even Macy's — a struggling retailer worth just $55 million in Berkshire's portfolio at the end of the first quarter — gained more than 2% on Monday simply from the Berkshire association. Quality companies tend to compound wealth over time, regardless of short-term volatility.
## Frequently Asked Questions
How much money do I need to start copying Berkshire's approach?
You can begin with as little as $500 per month in automatic investments. Sarah's example shows how $800 monthly over 20 years can build $471,000 in wealth through consistent investing in quality companies.
Should I buy the exact same stocks Abel is buying?
Not necessarily. Abel manages $2.6 billion positions like Delta Airlines, but individual investors should focus on building balanced 10-15 stock portfolios across different sectors. The strategy matters more than the specific stocks.
How long should I hold each investment?
Berkshire holds quality companies for decades, not years. Plan to hold each position for at least 5-10 years unless the company's fundamental business deteriorates. Abel's 224% increase in Alphabet shows the power of letting winners compound over time.
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**Sources**
• [CNBC](https://www.cnbc.com/2026/05/18/berkshire-portfolio-revamp-delta-airlines-macys-unitedhealth.html)
