Greg Abel Reverses Warren Buffett's Major Investment Strategies at Berkshire Hathaway
In his first six months as CEO of Berkshire Hathaway, Greg Abel has reversed two key investment strategies that defined Warren Buffett’s final years in charge. While Buffett had built a massive $373.3 billion cash reserve and avoided major equity purchases for over three years, Abel turned Berkshire into a net buyer of stocks during the second quarter of 2026. The company spent nearly $20 billion on equities, including a significant $10 billion private placement in Alphabet (GOOGL), marking one of its largest technology bets. Abel also announced the acquisition of homebuilder Taylor Morrison for $6.8 billion at a premium to market price and initiated aggressive share buybacks totaling $4.5 billion during his tenure, reducing Berkshire’s cash reserves by over $32 billion in 90 days. In addition to corporate spending, Abel personally invested $15.3 million of his after-tax salary into Class A shares of Berkshire Hathaway, committing to repeat the purchase annually for at least two decades. This shift has drawn mixed reactions from analysts and investors. While some view it as a stronger alignment with shareholders' interests, others like Michael Burry have warned that Abel may be abandoning Buffett’s disciplined approach.
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Topics: Berkshire Hathaway Equity Investments Greg Abel Stock Buybacks Warren Buffett