Berkshire Hathaway accelerates buybacks, lowers cash stake as profit tops forecasts
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- Berkshire Hathaway repurchased $4.5 billion of its own stock in Q2 and over $3.3 billion more in July, accelerating buybacks after a nearly two-year hiatus at a pace comparable to Buffett's peak years (2021 saw $27 billion repurchased).
- The conglomerate bought roughly $20 billion more stocks than it sold in Q2, including a $10 billion addition to its already-large Alphabet holding, ending 14 straight quarters as a net seller of shares.
- Berkshire's cash pile fell to $364.7 billion from a record $380.2 billion the prior quarter; the figure includes $6.8 billion spent in late July to acquire homebuilder Taylor Morrison.
- Operating profit rose 16% to $12.98 billion, topping analyst forecasts, while net income more than doubled to $25.67 billion and revenue rose 10% to $101.81 billion.
- Geico's pre-tax underwriting profit fell 45% — labeled "absolutely abysmal" by CFRA's Cathy Seifert — as accident claims rose and marketing spend surged to win back customers lost during its multi-year underwriting overhaul.
- In just his second quarter as CEO, Greg Abel is deploying capital at a pace drawing comparisons to Buffett's peak, though the company flagged "considerable uncertainty" on tariffs, wars, and softening demand at its car dealerships, Fruit of the Loom, and Forest River RVs.
Why it matters: Greg Abel's first real test of capital allocation under the Buffett framework — and he's already matching peak-Buffett buyback pace with $7.8 billion repurchased across Q2 and July. The $10 billion Alphabet addition shows concentrated equity bets remain in play, but Geico's 45% underwriting profit drop underscores why Berkshire still keeps $364.7 billion in cash.
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