Berkshire Hathaway’s Strategic Shift
Berkshire Hathaway (NYSE: BRKA, BRKB) was a net buyer of stocks for the first time in over three years, making nearly $20 billion in net purchases during Q2 2026. Notably, this included a $10 billion investment in Alphabet to support its AI initiatives. Under the new CEO Greg Abel, the company has resumed its buyback program, repurchasing $235 million in Q1 and an additional $4.5 billion in Q2.
As of June 2026, Berkshire’s cash reserves decreased from a record $497.4 billion to $365.5 billion. Despite this reduction, the company remains well-positioned for further investments. Operating earnings rose 16% year-over-year to nearly $13 billion, driven primarily by growth in manufacturing, retailing, and its energy segment.
On the downside, Berkshire’s insurance segment faced challenges, with underwriting profits dropping 13% to $1.73 billion. Nonetheless, the company’s strong cash position and newly adopted investment strategy suggest a proactive approach moving forward.
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