Greg Abel Made Major Additions to Alphabet and Delta Last Quarter While Berkshire Bought Back $4.4 Billion of Its Own Stock. Is This a Buying Signal Investors Should Watch?

Berkshire Hathaway, under the leadership of Greg Abel, has made significant additions to its holdings in Alphabet and Delta Air Lines during the second quarter. The company increased its Alphabet position substantially, adding millions of shares, and bought an additional 17.5 million shares of Delta, increasing its stake by 44%.

This aggressive buying strategy comes after Berkshire accumulated a large cash reserve, preferring to wait for attractive investment opportunities. The company has a rule that allows it to buy back shares only when its CEO determines that the price is below its conservatively estimated intrinsic value, indicating that Abel is not simply buying because the company has money available.

Instead, he is buying because he believes the stock offers value. Berkshire's diverse business portfolio, including iconic brands and blue chip companies, provides investors with exposure to various parts of the economy. The company's recent repurchases offer a useful starting point for evaluating the stock, as Berkshire's leadership is willing to spend billions buying its shares.

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