Berkshire Hathaway Reduces Cash Reserves and Returns to Net Equity Buying Under New CEO
Berkshire Hathaway reduced its cash reserves from nearly $400 billion at the end of Q1 to approximately $365.5 billion by June 30, marking a strategic shift under new CEO Greg Abel. For the first time in three years, Berkshire became a net buyer of equities during the second quarter, purchasing about $23.5 billion worth of stocks while selling only $3.7 billion. This move reflects increased confidence in market opportunities after years of cash accumulation. Berkshire has also engaged in significant portfolio restructuring by trimming or exiting smaller positions and acquiring new businesses such as Occidental Petroleum's chemicals division and homebuilder Taylor Morrison. Additionally, the company ramped up share buybacks to over $4 billion during Q2. A notable investment was a large stake in Alphabet through both private placements and open-market purchases. The shift does not indicate an abrupt change in Berkshire’s long-term strategy but rather selective capital deployment based on durable competitive advantages and reasonable valuations. The company still maintains substantial liquidity, preserving its strong balance sheet while investing where value is perceived.
Tickers: $GOOG $GOOGL $OXY $TMHC
Topics: acquisitions Berkshire Hathaway buybacks stock portfolio changes