- Berkshire repurchased approximately $4.5 billion of its own shares during the quarter, marking a significant increase from the $235 million spent in Q1 2026.
- Berkshire became a net buyer of equities in Q2 2026, with nearly $20 billion in net purchases, reversing a trend of being a net seller for 14 consecutive quarters.
- Greg Abel, in his second quarter as CEO, is deploying Berkshire's cash hoard, which declined to $365.5 billion at the end of June from a record $397.4 billion three months earlier.
- Berkshire reported a Q2 operating profit of $12.98 billion, up 16% year-over-year, exceeding analyst forecasts.
- Berkshire disclosed a $10 billion investment in Alphabet earlier in 2026 to support AI development.
- Berkshire had been a net seller of stocks for 14 consecutive quarters before Q2 2026, indicating a significant shift in strategy under Greg Abel as he begins to utilize the company's cash reserves.
- Repurchases began in March 2026 after a nearly two-year hiatus, with the company spending $235 million in the first quarter.
Berkshire Hathaway reported a 16% increase in operating profit for Q2, reaching $12.98 billion, driven by robust performance in its energy and manufacturing sectors. This growth offset a 13% decline in insurance underwriting earnings, which fell to $1.73 billion due to rising claims and marketing costs.1234678
CEO Greg Abel, who succeeded Warren Buffett earlier this year, has begun to utilize Berkshire's substantial cash reserves, repurchasing $4.5 billion of its own shares during the quarter. This marks a significant acceleration from the $235 million spent in the previous quarter, indicating a strategic shift as Berkshire became a net buyer of stocks for the first time in over three years, with nearly $20 billion in net purchases.59
Berkshire's cash reserves decreased to $365.5 billion from a record $397.4 billion as the company invested in stocks, including a $10 billion stake in Alphabet, the parent company of Google. The conglomerate's revenue also rose 10% to $101.81 billion, reflecting a recovery in various sectors despite ongoing challenges in the insurance market, particularly for Geico, which saw a 45% drop in pre-tax underwriting profit.
Overall, Berkshire's performance highlights a strategic pivot under Abel's leadership, focusing on capital deployment and stock buybacks while navigating a complex economic landscape.
“Berkshire's cash pile fell to $365.5 billion from a record $397.4 billion, as it also invested $10 billion in Alphabet. Geico's underwriting profit dropped 45%, prompting analyst Cathy Seifert to call results 'absolutely abysmal' and raise 'red flags.'”
CNBC
