Greg Abel Starts Spending: Berkshire’s Cash Hoard Finally Gets Put to Work

Berkshire Hathaway's cash reserve, which had remained largely untouched for two years, is now being actively utilized by CEO Greg Abel. In the latest second-quarter earnings report, operating earnings surged 16% year-over-year to $12.98 billion, while net earnings attributable to shareholders more than doubled to $25.67 billion.

Abel authorized over $4.5 billion in share buybacks during the quarter, a significant increase from $235 million in the previous quarter. For the first time in 15 quarters, Berkshire Hathaway became a net buyer of shares, acquiring approximately $23.5 billion of stock while selling $3.7 billion, resulting in around $20 billion in net purchases.

The company also made a substantial all-cash purchase of homebuilder Taylor Morrison, valued at $6.8 billion. Despite this increased spending, the cash and Treasury position remained robust at $365.5 billion at the end of the quarter. This shift in strategy, from passive capital hoarding to strategic stock purchases and acquisitions, signals a new phase for Berkshire Hathaway under Abel's leadership.