Berkshire steps up spending under new CEO Abel

Berkshire Hathaway (BRK-B) reported second-quarter 2026 operating earnings of $12.98 billion, an increase of 16% from $11.16 billion a year earlier. The earnings performance came alongside a significant change in how the conglomerate is using its sizeable cash resources during the period.

At June 30, Berkshire’s cash and equivalents position stood at $365.5 billion, down from about $397.4 billion three months earlier. The reduction reflects stepped-up capital deployment through share repurchases and public-equity investments during the quarter.

Berkshire repurchased approximately $4.5 billion of its own shares in the second quarter of 2026. This represented a sharp acceleration compared with about $235 million in buybacks during the first quarter.

The increased pace of repurchases used a portion of Berkshire’s large cash balance while returning capital to shareholders. The buybacks formed a key part of the company’s broader shift toward more active capital deployment in the period.

During the second quarter, Berkshire reversed a prior multi-quarter pattern of net selling in its public-equity portfolio. The company became a net buyer of equities, with nearly $20 billion in net purchases over the period.

Filings show Berkshire acquired substantial public-equity positions as part of this pivot. The move contributed to the decline in reported cash and equivalents and signaled a renewed appetite for listed stocks within the conglomerate’s investment operations.

Earlier in 2026, Berkshire disclosed a roughly $10 billion investment in Alphabet (GOOGL). By the end of June, Alphabet (GOOGL) ranked among Berkshire’s five largest equity holdings by market value.

The other major holdings listed alongside Alphabet were American Express (AXP), Apple (AAPL), Bank of America (BAC) and Coca-Cola (KO). These positions highlight the continued concentration of Berkshire’s equity portfolio in large, established companies, now including a sizeable technology exposure via Alphabet.

The recent quarter’s activity comes as Greg Abel, Berkshire’s new chief executive, takes a larger role in day-to-day operations. Abel has begun to put more of the company’s record cash hoard to work through buybacks and equity purchases.

Warren Buffett remains chairman and was reported to have consulted on the Alphabet investment, while Abel leads execution. Ahead of the earnings release, investors had focused on whether Berkshire would accelerate its use of liquidity, and the second-quarter figures show a clear increase in capital deployment under the new leadership structure.