Berkshire Hathaway has resumed share repurchases after pausing for over a year under new CEO Greg Abel, who took over earlier this year. He decided to buy back shares again, believing the intrinsic value of Berkshire Hathaway's stock exceeds its current market price.
Abel succeeded Buffett earlier this year after Buffett led and revitalized the company for more than six decades since taking control in 1965. Abel began his career as an accountant, later playing a key role in Berkshire’s energy business, and is now beginning to establish his own legacy.
Berkshire Hathaway invested $4.5 billion in share buybacks, making it a net buyer of shares in Q2 after being a net seller for 14 consecutive quarters. Simultaneously, the company deployed substantial cash reserves to invest over $23 billion in publicly traded company stocks.
Alphabet is among these, with Berkshire investing up to $10 billion in its shares. This marks a strategic investment approach distinct from Warren Buffett’s style, as Abel seeks to build his own track record and footprint by actively utilizing the company’s massive cash reserves, which still total around $365 billion.
Over the past three years under Warren Buffett’s leadership, he chose to slow investments and gradually reduce publicly traded stock holdings, adhering to his longstanding Value Investing principles and considering current market prices to be overvalued.
Therefore, Greg Abel’s decision to reinvest stands out significantly, especially as the U.S. stock market hovers near record highs.
However, during the same quarter, reports indicate Berkshire sold approximately $3.7 billion in shares, marking its lowest share sales volume since 2022.
Greg Abel has consistently received investor and shareholder praise for his management approach just months into his tenure.
According to Q2 2026 earnings, Abel’s second quarter in charge, operating income rose 16% year-over-year, supported by strong performances in energy, rail, and manufacturing sectors, which offset weaker insurance results.
Operating income increased to $12.98 billion from $11.16 billion the previous year. Manufacturing, service, and retail businesses saw profits grow 24% to $4.47 billion. Berkshire Hathaway Energy’s profits surged 27% to $891 million, and BNSF’s railroad profits rose 6% to $1.56 billion.
The insurance segment remained a drag but still profitable, with underwriting earnings down 13% to $1.73 billion from $1.99 billion the year before. Investment income from insurance fell 9% to $3.06 billion.
Net income more than doubled from the prior year to $25.7 billion, significantly boosted by the appreciation of Berkshire’s equity portfolio.
These results reflect the ongoing strength of the U.S. economy, with multiple industries performing well despite consumers facing pressures from high oil prices and inflation.
However, Berkshire’s stock has only risen about 3% year-to-date, compared to roughly 14% total return for the S&P 500 over the same period.
This presents a key challenge for Abel: maintaining Buffett’s culture and investment philosophy while leveraging Berkshire’s vast cash reserves to achieve market-beating returns.
After Buffett’s long period of holding cash and waiting for opportunities, Abel is signaling a clear willingness to reengage actively in investing.
Source:Berkshire Hathaway,Financial Times, CNBC [1][2],Bloomberg
Follow the Facebook page: Thairath Money at this link -https://www.facebook.com/ThairathMoney