There's something worth paying attention to. Warren Buffett officially stepped down as CEO of Berkshire Hathaway at the end of the year, handing over the $318 billion investment portfolio to Greg Abel. This is not just a change of leadership but also involves a deeper issue: how will the new steward handle the legacy left by this legendary investor?

According to the latest 13F disclosures, there's a particularly interesting phenomenon. In this massive investment portfolio, nearly 61% of the assets are concentrated in just five stocks. Specifically, Apple accounts for 19.5%, American Express 15.3%, Coca-Cola 10.1%, Bank of America 8.2%, and Chevron 7.6%. Such concentration is seen as both an advantage and a risk by professional investors.

I noticed that Warren Buffett mentioned in his 2023 shareholder letter eight companies he considers "permanent holdings." Among them are Coca-Cola and American Express. These two companies have been in Berkshire's portfolio for decades, since 1988 and 1991 respectively. More importantly, the returns on these positions are simply astonishing—based on the original cost basis, Coca-Cola's return is 63%, and American Express is 39%. With such levels of return, there's no reason to move these holdings.

But here’s the twist. Although Abel and Warren Buffett both pursue value investing, the two big positions in Apple and Bank of America might face adjustments. Apple’s current P/E ratio has reached 34, nearly tripling since Buffett bought in early 2016. This price is no longer cheap for a company mainly relying on hardware sales. Bank of America’s situation is even more obvious—when Buffett entered in August 2011, the stock was trading at a 62% discount to book value. Now it’s trading at a 31% premium. So don’t be surprised if Abel continues to trim these two positions.

Interestingly, Chevron. This energy giant might receive a similar long-term holding treatment as Coca-Cola and American Express. The reason is simple: Abel was previously CEO of Berkshire Hathaway Energy, and he has an exceptionally deep understanding of the energy industry. Chevron’s business model is clever—although drilling yields the highest profit, pipelines, chemical plants, and refineries can effectively hedge against oil price declines. This structural moat is something Abel will definitely recognize.

Overall, Warren Buffett’s remaining portfolio is highly concentrated but logically coherent. The new leader will bring his own style, but Berkshire Hathaway’s investment philosophy will not change—find good businesses and buy them at reasonable prices. This principle proved effective in Warren Buffett’s era, and it should remain unchanged under Abel’s leadership.