Warren Buffett is out, and Berkshire Hathaway is spending again
Under new CEO Greg Abel, Berkshire Hathaway has begun deploying its massive cash reserves to purchase stocks and repurchase shares. This marks a strategic departure from the cash-hoarding approach maintained by former CEO Warren Buffett.
Why it matters
Berkshire Hathaway's investment activity is a major indicator of market sentiment and corporate strategy for one of the world's largest holding companies.
Berkshire Hathaway shared its latest earnings report on Saturday. AP Photo/Rebecca S. Gratz In his waning years as Berkshire Hathaway's CEO, Warren Buffett was hoarding cash. The company had close to $400 billion on hand before Buffett retired earlier this year. Now, the new CEO, Greg Abel, is starting to spend it. Berkshire Hathaway's exceptionally deep pockets are getting shallower under its new CEO, Greg Abel . In its latest earnings report on Saturday, the company said it ended June with $365.5 billion in cash and Treasury bills, a noticeable dip from the $397.4 billion recorded at the end of March. The company's net income, meanwhile, reached $25.6 billion, more than double the $12.3 billion recorded the same time last year. The company said the cash went toward repurchasing its own shares and buying stocks. The last time Berkshire Hathaway bought more stocks than it sold was in 2022.
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