BUSINESS

Berkshire lowers cash stake as buybacks accelerate, reports higher profit

▪

Read, Watch or Listen

Media Bias Meter

Sources: 24

Left 4%

Center 83%

Right 13%

Sources: 24

Aug 8 (Reuters) - Berkshire Hathaway (BRKa.N), opens new tab began reducing its enormous stockpile of cash in the second quarter, investing billions of dollars in stocks including Alphabet ‌and repurchasing billions more of its own, as it reported higher earnings at its dozens of businesses. The conglomerate said on Saturday it repurchased $4.5 billion of its own stock in the second quarter and over $3.3 billion more in July, accelerating repurchases it had begun in March following a nearly two-year hiatus.It ⁠also bought nearly $20 billion more stocks than it sold between April and June, ending 14 straight quarters as a net seller of stocks. Purchases included a $10 billion addition to Berkshire's already-large investment in Google and YouTube parent Alphabet (GOOGL.O), opens new tab, which is now one of its largest stock holdings. Berkshire ended June with $364.7 billion of cash, down from a record $380.2 billion three months earlier. Second-quarter operating profit rose 16% to $12.98 billion, or about $9,068 per Class A share, from $11.16 billion a year earlier. The results benefited from higher ‌earnings ⁠at the BNSF railroad and from manufacturing, service and retail operations, and from foreign currency fluctuations.Net income more than doubled to $25.67 billion, or about $17,928 per Class A share, from $12.37 billion. Year-earlier results included a $3.76 billion writedown for Berkshire's stake in the packaged food company Kraft ⁠Heinz (KHC.O), opens new tab. The quarter was the second since Greg Abel became Berkshire's chief executive, succeeding Warren Buffett, who remains chairman. Investors and analysts have been eager to see how Abel's approach to managing Berkshire's ⁠capital differs from that of Buffett, who had difficulty deploying cash toward the end of his 60 years at the helm of his Omaha, Nebraska-based conglomerate. The ⁠pace of stock repurchases is comparable to Buffett's peak pace early this decade. Berkshire's biggest year for buybacks was 2021, when it repurchased $27 billion of stock.Reporting by Jonathan Stempel in New York; Editing by Sharon Singleton and Susan Fenton

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

On December 31, 2021 Berkshire recorded peak annual share repurchases totaling twenty-seven billion dollars.
On March 31, 2025 Warren Buffett announced plans stepping down as chief executive officer.
On June 30, 2025 Berkshire recorded a large impairment charge on Kraft Heinz stock.
On March 31, 2026 Berkshire resumed share buybacks following a two-year corporate operational hiatus.
On March 31, 2026 (11:59 PM EST) cash holdings reached a record three hundred eighty billion dollars.
On August 8, 2026 (5:00 AM EST) Berkshire reported quarterly operating profit of twelve point ninety-eight billion.
On August 8, 2026 (5:00 AM EST) second quarter net income doubled to twenty-five point sixty-seven billion.
On August 8, 2026 (5:00 AM EST) cash reserves dropped to three hundred sixty-four point seven billion.
On August 8, 2026 (5:00 AM EST) net stock purchases exceeded sales by nearly twenty billion dollars.
On August 8, 2026 (5:00 AM EST) July stock repurchases reached three point three billion total dollars.
Berkshire will likely maintain aggressive equity investments throughout late 2026.
Share repurchases are expected to remain steady under CEO Abel.
Operating earnings from railroad segments will reflect broader economic trends.

News Intelligence

Berkshire increases market liquidity through active equity and share repurchases.
Greg Abel establishes active capital deployment strategy for corporate reserves.
Berkshire shareholders, institutional investors, Alphabet investors, and financial equity markets.
Focus on quarterly SEC Form 10-Q filings for verified figures

Media Bias

Articles Published:: 24
Right Leaning:: 3
Left Leaning:: 1
Neutral:: 20

Explain Framing

Left: Highlighting large corporate tech investments like Alphabet alongside operating growth. Center: Reporting quarterly earnings, cash reduction, share buybacks, and leadership transition. Right: Emphasizing private enterprise capital deployment, operating efficiency, and market confidence.