Berkshire Hathaway pivots from record cash hoard to aggressive buying

The company’s cash reserves dipped to $364.7 billion by the end of June, down from the record $380.2 billion held just three months prior. This shift marks a notable departure from the long-standing caution that defined the firm’s capital management under Buffett. Investors are watching closely to see how CEO Greg Abel, now in his second quarter at the helm, steers the massive Omaha-based enterprise as he balances legacy holdings with new market opportunities.

Financial performance remains robust, with operating profit climbing 16% to $12.98 billion. Gains in the BNSF railroad and diverse manufacturing and retail divisions helped drive these results. Net income saw an even steeper climb, doubling to $25.67 billion, partially bolstered by the absence of significant writedowns that hampered the previous year’s figures. With $4.5 billion spent on buybacks during the second quarter and an additional $3.3 billion deployed in July, the firm is signaling renewed confidence in its own valuation.