Berkshire Hathaway's new CEO Greg Abel deploys $10B in Alphabet stock, buys back shares
window 24h
IN SHORT
Berkshire Hathaway, led by new CEO Greg Abel, invested $10 billion in Alphabet stock and repurchased $4.5 billion of its own shares in the second quarter. These moves significantly reduced the company's cash reserves to $365.5 billion. The conglomerate also reported a 16% increase in operating profit, reaching $12.98 billion, fueled by robust performance across its diverse business segments.
✉Newsletter
PiQ Daily
Pick your topics. Get only what matters, on your cadence.
Strong performance in manufacturing, service, and retail operations drove profit growth.
Greg Abel is the new CEO of Berkshire Hathaway.
Berkshire Hathaway, under the leadership of its new CEO Greg Abel, made significant strategic moves in the second quarter, investing $10 billion in Alphabet, the parent company of Google. Concurrently, the conglomerate accelerated its share repurchase program, buying back approximately $4.5 billion of its own stock. These actions led to a substantial decrease in Berkshire Hathaway's cash holdings, which fell to $365.5 billion.
In addition to these investment and buyback activities, Berkshire Hathaway announced a 16% rise in its second-quarter operating profit. This growth brought the total operating profit to $12.98 billion. The increase was primarily attributed to strong performance within the company's manufacturing, service, and retail operations. The accelerated stock buybacks also contributed to the overall financial results for the quarter.
↳ Why This Matters
Berkshire Hathaway, under the leadership of its new CEO Greg Abel, made significant strategic moves in the second quarter, investing $10 billion in Alphabet, the parent company of Google. Concurrently, the conglomerate accelerated its share repurchase program, buying back approximately $4.5 billion of its own stock. These actions led to a substantial decrease in Berkshire Hathaway's cash holdings, which fell to $365.5 billion.
Frequently asked questions
Greg Abel is the new CEO of Berkshire Hathaway, having officially taken the helm in January. He is overseeing the company's investment strategy and capital deployment.
The company reduced its cash reserves by investing $10 billion in Alphabet and repurchasing $4.5 billion of its own stock, as well as completing the acquisition of Taylor Morrison Home Corporation.
Berkshire Hathaway's overall profit more than doubled to $25.667 billion, driven by investment gains. Operating earnings were $12.983 billion.
What Happens Next
01Berkshire Hathaway will disclose specific holdings of the over $21 billion in other stocks added to its portfolio later.
Get the newsletter.
Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.
