TLDRs
- Berkshire becomes a net stock buyer after 14 consecutive quarters of selling equities.
- Share repurchases jumped sharply as management deployed more capital into undervalued opportunities.
- Operating earnings rose 16% despite weaker insurance underwriting and investment income.
- Investors now focus on Greg Abel’s capital allocation decisions and future portfolio moves.
Berkshire Hathaway shares are drawing renewed investor attention after the company reversed a nearly four-year trend of selling stocks and became a net buyer of equities during the second quarter of 2026.
The shift comes alongside a dramatic increase in share repurchases and stronger operating results, reinforcing expectations that Vice Chairman Greg Abel is taking a more active role in deploying Berkshire’s massive cash reserves.
The company disclosed that it purchased nearly $20 billion more in equities than it sold during the quarter, ending a streak of 14 consecutive quarters as a net seller. Berkshire also repurchased more than $7.8 billion of its own stock between April and July, including $4.5 billion during the second quarter and over $3.3 billion in July alone.
Class B shares closed Friday at $521.80, up 1.69% for the week and 3.81% year to date, leaving the stock just below its recent 52-week high.
Berkshire Hathaway Inc., BRK-B
Capital Deployment Accelerates
The most significant takeaway from Berkshire’s latest earnings report was not the profit growth itself, but the pace at which the company began putting cash to work. In the first quarter, Berkshire had bought back only $235 million of stock. The jump to more than $4.5 billion in the following quarter represents a more than nineteenfold increase.
Berkshire’s cash and Treasury-bill holdings declined by $15.5 billion over three months, falling from $380.2 billion to $364.7 billion. Even after that reduction, the company still holds one of the largest cash positions in corporate America, giving it substantial flexibility for acquisitions, stock purchases, and additional buybacks.
The buyback activity is particularly important because Berkshire repurchases shares only when management believes they trade below intrinsic value. Under the company’s current structure, that judgment is made by Greg Abel in consultation with Chairman Warren Buffett. Investors are increasingly viewing the recent acceleration as a signal that Berkshire sees compelling value in its own shares and in selected equity investments.
Earnings Growth Remains Strong
Berkshire’s operating businesses delivered solid results in the second quarter. Revenue rose 10% to $101.81 billion, while operating earnings increased 16.3% to $12.98 billion from $11.16 billion a year earlier.
The strongest contributions came from manufacturing, service, and retailing operations, where earnings climbed 24.1% to $4.47 billion. Berkshire Hathaway Energy posted the fastest growth rate among major segments, with earnings rising 26.9% to $891 million. BNSF railroad also improved, increasing 6.3% to $1.56 billion.
Insurance remained the weaker area. Underwriting profit fell 13.1% to $1.73 billion, and insurance investment income declined 9.1% to $3.06 billion.
A favorable currency swing also helped overall results. Berkshire recorded a foreign-exchange gain of $326 million, compared with a loss of $877 million in the prior year period, providing a meaningful boost to operating earnings growth.
Net income more than doubled to $25.67 billion, though that figure includes unrealized investment gains and is generally considered less representative of Berkshire’s underlying operating performance.
Abel’s Leadership In Focus
The quarter has intensified scrutiny of Greg Abel as he gradually assumes a larger leadership role within Berkshire. Analysts have long watched for evidence of how aggressively he would deploy capital once opportunities emerged.
CFRA analyst Cathy Seifert described the report as a healthy earnings beat and said investors would likely be encouraged by the results, while noting that Abel appears to be slowly stepping up in his leadership responsibilities.
The change in capital allocation strategy may become one of the clearest early indicators of how Berkshire could operate in the post-Buffett era.
Wall Street Stays Cautious
Despite the stronger earnings and renewed buying activity, analysts have not turned broadly bullish. FactSet’s consensus rating has shifted from Overweight to Hold over the past three months, and the median price target of $481 remains below the current share price.
Investors are also weighing several risks. Geico’s pre-tax underwriting profit dropped 45% to $994 million due to higher claims and increased marketing expenses. Berkshire further warned about macroeconomic and geopolitical uncertainties and pointed to softer demand in certain consumer segments.
The market’s next focus will be Berkshire’s upcoming portfolio filing, which should reveal where the company directed its new equity purchases. For now, the key question is whether Abel’s faster pace of capital deployment can offset ongoing pressure in the insurance business and justify the growing attention surrounding Berkshire Hathaway’s evolving investment strategy.
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