Warren Buffett Thinks Stocks Are Expensive; Greg Abel Disagrees
Warren Buffett has long adhered to value investing principles and recently expressed concerns about stock valuations being too high, comparing the market to a casino. Before stepping down as Berkshire Hathaway CEO at year-end 2025, he led the company through 13 consecutive quarters of net selling stocks, accumulating $373.3 billion in cash. Greg Abel, who took over as CEO early this year, has taken a different approach by making Berkshire a net buyer of stocks for the first time since 2022. In Q2, the company made significant purchases including Alphabet ($17B), Delta Air Lines ($1.64B), Lennar ($273M), and Macy's ($101M). These are cyclical stocks that suggest a bullish outlook. However, Berkshire also sold major stakes in Bank of America (-$1.7B) and Capital One Financial (-$830M), while reducing positions in Kroger and Nucor. The shift reflects Abel’s strategy diverging from Buffett's traditional value investing approach.
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Topics: Berkshire Hathaway Greg Abel stock purchases value investing Warren Buffett