Berkshire Hathaway entered a new phase under CEO Greg Abel in the second quarter, combining stronger operating results with a notable shift in how the conglomerate deploys its enormous liquidity reserves. Operating earnings increased 16% to $12.98 billion, while Berkshire became a net buyer of equities after 14 consecutive quarters of net stock sales.

Operating Businesses Deliver Broad Earnings Growth

Berkshire’s quarterly performance was supported by several of its major operating divisions. Manufacturing, service and retailing earnings climbed 24% to $4.47 billion, while Berkshire Hathaway Energy increased profit by 27% to $891 million. Railroad subsidiary BNSF also delivered a 6% increase in earnings to $1.56 billion.

The gains more than offset weakness in the insurance business, traditionally one of Berkshire’s most important earnings engines. Insurance underwriting earnings declined 13% to $1.73 billion from $1.99 billion a year earlier, while insurance investment income fell 9% to $3.06 billion. The mixed performance highlights the diversification of Berkshire’s operating model, where strength outside insurance can materially cushion pressure in the group’s financial businesses.

Abel Begins Putting Berkshire’s Cash to Work

The most significant strategic development was the acceleration in capital deployment under Abel, who became CEO at the beginning of 2026. Berkshire repurchased approximately $4.5 billion of its own shares during the second quarter, sharply above the $235 million spent on buybacks during the first quarter.

The conglomerate also reversed its long-running pattern of reducing equity exposure. Berkshire made nearly $20 billion in net stock purchases during the quarter, ending a 14-quarter stretch in which it had been a net seller of equities. The change suggests that management is finding more opportunities to deploy capital following a period in which Buffett had repeatedly indicated that attractive opportunities in public markets were difficult to identify.

The Cash Fortress Is Starting to Shrink

Berkshire’s cash and cash equivalents declined to $365.5 billion at the end of June from a record $397.4 billion three months earlier. The reduction reflects the combination of equity purchases, share repurchases and the closing of the company’s acquisition of Taylor Morrison.

The shift is strategically significant because Berkshire’s massive liquidity position has long represented both a financial advantage and a measure of management’s discipline. Investors had increasingly focused on whether Abel would deploy some of the capital accumulated during Buffett’s tenure. The second-quarter results provide an early indication that Berkshire’s new leadership is prepared to act while retaining a substantial liquidity buffer.

Berkshire’s equity portfolio also continues to evolve. Alphabet became one of its five largest equity holdings by market value at the end of June, alongside American Express, Apple, Bank of America and Coca-Cola. Berkshire previously disclosed a $10 billion investment in Alphabet, with Buffett saying he initiated the position after consulting with Abel. Going forward, investors will closely monitor whether the second-quarter buying represents the beginning of a sustained capital-deployment cycle or a measured response to specific market opportunities. The trajectory of Berkshire’s cash balance, future buybacks, acquisitions and equity purchases will be central to assessing how Abel reshapes the conglomerate while preserving the financial discipline established under Buffett.