US Stock Market: Berkshire steps up buybacks, boosts Alphabet stake as cash falls

Berkshire Hathaway began drawing down its massive cash pile in the second quarter, investing billions of dollars in stocks including Alphabet and accelerating share buybacks, while reporting stronger-than-expected quarterly operating profit, Reuters reported.

The conglomerate repurchased $4.5 billion of its own shares between April and June and bought more than $3.3 billion worth in July, stepping up buybacks that resumed in March after an almost two-year pause. Berkshire also purchased nearly $20 billion more stocks than it sold in the second quarter, ending 14 consecutive quarters as a net seller of equities, Reuters reported.

Among its purchases was about $10 billion of additional Alphabet stock, the parent company of Google and YouTube, making it one of Berkshire's largest equity holdings.


The shift marks a notable change in Berkshire's capital allocation as new Chief Executive Greg Abel takes a greater role in managing the $1.12 trillion conglomerate following Warren Buffett's departure as CEO.

Cash pile declines as Berkshire increases investments

Berkshire ended June with $364.7 billion in cash and cash equivalents, down from a record $380.2 billion three months earlier. The company also said it spent $6.8 billion in late July to acquire shares of homebuilder Taylor Morrison, according to Reuters.

The pace of Berkshire's share repurchases is approaching levels seen during Buffett's most active period of buybacks. The company repurchased a record $27 billion of its own shares in 2021.

Berkshire's policy permits buybacks when Abel determines that the stock is trading below its intrinsic value, following consultation with Buffett. The company's Class A shares have risen about 3% this year, compared with a roughly 13% gain for the S&P 500. Since Buffett announced in May 2025 that he would step down as CEO, Berkshire shares have underperformed the benchmark by about 40 percentage points.

Profit beats expectations

Berkshire's quarterly operating profit increased 16% to $12.98 billion, or about $9,068 per Class A share, from $11.16 billion a year earlier. The result exceeded analysts' expectations.

Net income more than doubled to $25.67 billion, or about $17,928 per Class A share, from $12.37 billion a year earlier. The figure includes unrealized gains and losses on Berkshire's stock portfolio, which the company has urged investors to look past because of their volatility.

Revenue rose 10% to $101.81 billion after remaining largely stagnant in previous quarters.

Improved results at BNSF railroad and service businesses such as NetJets and TTI helped offset weaker performance at Geico, Berkshire's auto insurance operation.

Geico weighs on insurance results

Geico's pretax underwriting profit fell 45% as accident claims increased and the insurer raised marketing spending to rebuild its customer base.

The company had spent several years focusing on improving underwriting and reducing expenses, which contributed to customer losses. It has since increased advertising expenditure to attract customers back.

Overall profit from Berkshire's insurance and reinsurance operations fell 11%, with lower-than-expected property losses and stronger results from some insurance businesses partly offsetting Geico's weakness.

BNSF, energy businesses post gains

BNSF's profit increased 6% to $1.56 billion as the railroad transported greater volumes of consumer, agricultural and energy products and collected higher fuel-related revenue.

Berkshire Hathaway Energy posted a 27% increase in profit to $891 million, helped by improved utility margins and tax credits.

The company warned that considerable uncertainty remained around the global macroeconomic and geopolitical outlook, including the impact of tariffs and ongoing wars.

Berkshire also said weaker demand at several consumer-facing businesses, including its network of 103 car and truck dealerships, Fruit of the Loom and Forest River recreational vehicles, reflected changes in consumer confidence.

The quarter was the second since Abel became CEO, while Buffett remains Berkshire's chairman. Reuters noted that investors are closely watching how Abel's approach to deploying Berkshire's capital evolves as he succeeds Buffett after six decades at the helm.