Abel puts a big chunk of Berkshire's cash to work
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- Berkshire Hathaway repurchased $4.5 billion of its own stock in Q2 2026, cutting cash reserves 8.0% to $365.5 billion from the March 31 record of $397.4 billion — the first significant decline since early 2022.
- Greg Abel flipped Berkshire to a net buyer of equities for the first time in 14 quarters, with a $20 billion net increase that includes the $10 billion Alphabet investment announced in June.
- Berkshire's operating earnings rose 16% to $12.98 billion in Q2, driven by Berkshire Hathaway Energy (+27%) and BNSF railroad (+6%), though insurance underwriting earnings fell 13% and GEICO underwriting profits plunged 45%.
- Barron's estimates Berkshire spent another $3.4 billion on buybacks in July before a late-month stock rally, extending the Q2 deployment momentum.
- Berkshire's DaVita sale was a mechanical trim under a 2024 agreement requiring DaVita to buy back shares from Berkshire, not a market call — the remaining ~$5.3 billion position is still up ~62% YTD despite a 23% post-earnings plunge.
- CFRA Research's Cathy Seifert told Bloomberg the buybacks are "Greg's way of taking the helm and asserting himself," while Gabelli's Macrae Sykes called them a confidence signal from elite capital allocators.
Why it matters: After 14 consecutive quarters as a net seller, Berkshire's $20 billion net buying pivot is the clearest sign yet that Abel will deploy the record cash hoard: $4.5 billion in Q2 buybacks plus an estimated $3.4 billion more in July. GEICO's 45% underwriting profit decline shows insurance remains the drag even as the rest of the operating businesses fire.
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