Berkshire Hathaway Shares Hit Three-Month High Under Greg Abel

The Omaha-based firm reported its cash holdings dropped to $364.7 billion by June 30, down from the record $380.2 billion held three months prior. This reduction signals a departure from the conservative cash-heavy strategy that defined the final years of the Buffett era. During the second quarter, Berkshire repurchased $4.5 billion of its own stock and committed $23.5 billion to external equities, most notably a $10 billion stake in Alphabet. This momentum continued into July, with an additional $10.1 billion allocated toward buybacks and the acquisition of home builder Taylor Morrison.

Financial performance surpassed analyst expectations as operating profit climbed 16% to $12.98 billion. Strong results from railroad and service units helped cushion the impact of rising accident claims at Geico. Net income surged to $25.67 billion, bolstered by unrealized gains on core holdings like Apple and Alphabet, while revenue grew 10%—a sharp reversal after two years of stagnation. Market reaction was immediate, with Class A shares gaining 3.3% to reach $806,102.81 in Monday morning trading. While analysts at UBS praised the disciplined capital allocation, others like Keefe, Bruyette & Woods remain cautious, citing persistent macroeconomic headwinds and pricing pressures within the insurance sector.