Greg Abel Starts Putting Berkshire Hathaway’s Cash Pile to Work

Greg Abel’s first year as Berkshire Hathaway CEO is showing a more active use of the conglomerate’s balance sheet. Berkshire’s cash and Treasury bills fell from $380 billion at the end of March to $365 billion at the end of June, excluding Treasury payables. The move stands out because Berkshire’s cash pile roughly doubled during Warren Buffett’s final two years as CEO.

Berkshire bought $23.5 billion in stocks while selling $3.7 billion, amounting to nearly $20 billion in net stock purchases. That ended a 14-quarter stretch as a net seller and marked the largest net outlay since the first quarter of 2022. Abel also oversaw $4.6 billion in Berkshire stock repurchases, the company’s biggest buyback quarter since 2021.

Berkshire reported a 16% year-on-year rise in operating income to $13 billion in the second quarter. Lower insurance profits were offset by profit growth at BNSF Railway, Berkshire Hathaway Energy, and the manufacturing, service, and retailing division, along with a nearly $1.3 billion foreign-currency exchange gain. After the quarter ended, Berkshire completed its $8.5 billion cash acquisition of Taylor Morrison Home Corporation.

The increase in stock purchases and buybacks suggests a change in tempo, not necessarily a break with Buffett’s playbook. Abel has pledged disciplined capital allocation and has said Berkshire will stay patient while pursuing opportunities where reward matches risk. Investors should watch whether buybacks continue, whether net stock purchases remain positive, and how much cash Berkshire keeps in reserve.