Now Reading: New Berkshire CEO Greg Abel puts $30 billion to work in Q2
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New Berkshire CEO Greg Abel puts $30 billion to work in Q2
Warren Buffett's successor Greg Abel deployed roughly $30 billion in the second quarter, investing $10 billion in Alphabet, buying back $4.5 billion of Berkshire shares and completing a $6.8 billion Taylor Morrison…
The Story in Brief
Warren Buffett's successor Greg Abel deployed roughly $30 billion in the second quarter, investing $10 billion in Alphabet, buying back $4.5 billion of Berkshire shares and completing a $6.8 billion Taylor Morrison acquisition that closed in July. The cash pile shrank from a record $380 billion in March to $365.5 billion in June.
Operating profit rose 16% to $12.98 billion, beating estimates, with BNSF Railway and Berkshire Hathaway Energy gains offsetting a 45% drop in Geico's underwriting profit. Net income more than doubled to $25.67 billion on paper investment gains. Berkshire's shares have underperformed the S&P 500 this year, rising 3% against the index's 13% climb.
The Indian Opinion
The shift from Buffett's thrift to Abel's dealmaking has sparked two lazy narratives: that Berkshire is abandoning its value doctrine, or that Abel is just a younger version of the Oracle. Neither holds up. The Alphabet investment is a growth bet, not a value one. The Taylor Morrison buy is pure value. And the buybacks remain modest by historical standards. The real test will come when a full market downturn arrives, as Buffett warned about tariffs and consumer confidence already softening in Geico's results. Will Abel buy fear or freeze?
Sources (3): livemint.com, livemint.com (2), timesofindia.indiatimes.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
