Berkshire ends 14-quarter selling streak with $20B net purchases

Berkshire Hathaway reported Q2 net profit of $25.67 billion, up 107% year-over-year, as CEO Greg Abel deployed nearly $20 billion in net stock purchases.

"Missing Google in its early days was a historic mistake," Warren Buffett said, while expressing confidence in Alphabet's AI prospects. Buffett confirmed he personally initiated the Alphabet investment, with Abel holding final decision-making authority. He added that Google's odds of success in AI likely far surpass most projects pitched on Wall Street.

Operating earnings rose 16% to $12.98 billion from $11.16 billion a year earlier. Manufacturing, service and retailing jumped 24% to $4.47 billion, while Berkshire Hathaway Energy profit surged 27% to $891 million. BNSF railroad posted a 6% increase to $1.56 billion. Insurance underwriting fell 13% to $1.73 billion, and insurance investment income declined 9% to $3.06 billion. Insurance float stood at approximately $177.5 billion as of June 30, up about $1.1 billion from the end of 2025. Other businesses contributed $1.27 billion in operating earnings, versus $32 million a year earlier, helped by a $326 million forex gain on non-U.S. dollar debt.

After-tax investment gains reached $12.68 billion in Q2, up 155% year-over-year, with unrealized equity gains rising approximately $10.9 billion. First-half net profit totaled $35.77 billion, up about 111%, while first-half operating earnings reached $24.33 billion, up roughly 17%.

Cash reserves declined to $365.5 billion from a record $397.4 billion at the end of Q1, as the conglomerate deployed capital through buybacks and equity purchases. Berkshire repurchased $4.53 billion of its own stock in Q2, the highest in five years, versus $235 million in Q1. Abel had previously said the buyback resumption reflected management's view that Berkshire's intrinsic value exceeded its market price. June buybacks accelerated to approximately 7.14 million Class B shares at an average price of roughly $487.98. The company also closed its acquisition of Taylor Morrison during the quarter.

Alphabet entered Berkshire's top five holdings with an 8.8% portfolio weight, joining American Express, Apple, Bank of America and Coca-Cola. The five largest positions account for 66% of the equity portfolio's fair value. Apple's share has fallen to 20% from over 50% at its peak, while Bank of America was trimmed to 9.1%. Berkshire's Alphabet stake grew 224% in Q1, expanding from 17.8 million shares to nearly 58 million shares.

Berkshire Class B shares closed Friday at $521.80, up 9% over the past three months and 3.7% below their all-time high. The stock has gained 3% year-to-date, trailing the S&P 500's 13% advance.

The shift from defensive cash accumulation to active deployment marks a strategic pivot under Abel's leadership. Investors will watch whether the buying pace continues into Q3 and whether additional large positions emerge in the coming quarters.

This article is for informational purposes only and does not constitute investment advice.