Topic overview
In brief
- Berkshire Hathaway's cash holdings decreased to $365.5 billion from nearly $400 billion.
- The company reported a profit of $25.667 billion in the second quarter, more than doubling last year's earnings.
- Berkshire's recent financial activities indicate a serious commitment to share buybacks and strategic investments.
Summary
In the United States, Berkshire Hathaway, the conglomerate led by Warren Buffett, reported its second-quarter earnings on a Saturday morning in early August 2026. The company disclosed a significant reduction in its cash holdings, which fell to $365.5 billion from nearly $400 billion at the end of March. This financial report indicated that Berkshire had added over $24 billion worth of various stocks to its portfolio, although the specific stocks purchased will be revealed in a separate filing later in the month. The report also highlighted that Berkshire's bottom line profit more than doubled to $25.667 billion, translating to $17,868.44 per Class A share, largely due to a substantial paper gain in the value of its investments. This increase comes after a previous year where the company reported earnings of $12.37 billion, or $8,600.89 per Class A share. However, Buffett has consistently advised investors to focus on operating earnings for a clearer picture of the company's performance, which showed an increase to $12.983 billion, or $9,038.30 per Class A share, from $11.16 billion, or $7,759.58 per Class A share the previous year. Berkshire Hathaway's diverse portfolio includes major insurers like Geico, a variety of utilities, and a range of manufacturing and retail companies, such as Precision Castparts and See's Candy. In addition to its stock purchases, the company also completed a $6.8 billion acquisition of homebuilder Taylor Morrison, although this acquisition will not be reflected in the quarterly figures as it closed in July. The report indicated that Berkshire had resumed share buybacks for the first time in over two years, with $4.5 billion repurchased in the second quarter, although this amount was on the lower end of investor expectations. The company had previously repurchased $78 billion worth of its own stock between 2018 and 2024, and the recent buybacks were primarily conducted in June. The company’s leadership, with Abel as CEO since January, continues to evaluate share repurchases based on their perceived value rather than committing to a specific buyback amount.