Berkshire Hathaway Repurchased $4.5 Billion in Shares Last Quarter
Greg Abel, CEO of Berkshire Hathaway since early 2026, repurchased approximately $4.5 billion worth of the company's stock during the second quarter. This marks a significant shift from Warren Buffett’s historical approach to share buybacks, which were rare and only executed when shares appeared undervalued. The move aligns with Berkshire’s stated policy that allows for repurchases if the CEO—after consulting with the chairman—believes the price is below intrinsic value. The $4.5 billion in buybacks did not come close to breaching the company's minimum cash balance requirement of $30 billion, given its nearly $400 billion in liquidity. While some analysts had speculated that Berkshire spent up to $11 billion on repurchases during the quarter, the actual figure was lower but still substantial. The key takeaway is that Abel and Buffett both agreed shares were attractively priced at the time of purchase. The buyback could signal confidence from leadership about Berkshire’s intrinsic value and long-term prospects. Investors may view this as a positive sign for future performance, though it remains to be seen whether the stock will continue its modest upward trend following the second-quarter low.
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Topics: Berkshire Hathaway CEO transition Greg Abel share buybacks