Abel puts a big chunk of Berkshire's cash to work
Berkshire Hathaway CEO Greg Abel has significantly reduced the company's massive cash reserves by initiating share buybacks and increasing equity purchases. This move marks a shift in strategy as Abel asserts his leadership following Warren Buffett.
Why it matters
As one of the world's largest holding companies, Berkshire's capital allocation decisions serve as a bellwether for investor sentiment and market valuation.
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In his second quarter as the new CEO of Berkshire Hathaway, Greg Abel did some serious spending.
As a result, the company's still huge cash reserves declined significantly for the first time since early 2022.
Saturday morning's financial report for the three months ending June 30 shows Berkshire had $365.5 billion on hand, a reduction of 8.0% from its record high $397.4 billion as of March 31.
Excluding BNSF's cash and adjusting for Treasury bills purchased but not yet paid for, a metric favored by Berkshire, the company's cash declined 3.8% to $359.2 billion.
Part of that spending was for $4.5 billion of Berkshire share buybacks.
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