Now Reading: Berkshire CEO Abel spends cash, buys $10bn Alphabet stake
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Berkshire CEO Abel spends cash, buys $10bn Alphabet stake
Berkshire Hathaway CEO Greg Abel invested $10 billion in Alphabet (Google's parent) and bought back $4.5 billion of Berkshire shares in the second quarter, reducing the cash hoard to $365.5 billion from…
The Story in Brief
Berkshire Hathaway CEO Greg Abel invested $10 billion in Alphabet (Google's parent) and bought back $4.5 billion of Berkshire shares in the second quarter, reducing the cash hoard to $365.5 billion from nearly $400 billion. Operating profit rose 16% to $12.98 billion. The conglomerate also completed a $6.8 billion Taylor Morrison acquisition, closing in July. Abel took over in January; Buffett remains chairman.
The buybacks are the biggest since 2021. Abel restarted repurchases in the first quarter after a two-year pause. Berkshire's bottom-line profit more than doubled to $25.67 billion, boosted by a paper gain in investments versus last year's writedown. Alphabet joins Berkshire's top five holdings, replacing Chevron. A securities filing later this month will detail other stock purchases.
The Indian Opinion
Some call Abel too cautious for keeping a $365 billion cash pile. Others say he is too bold, chasing Google's AI story and buybacks when Buffett long sat on his hands. The truth is more ordinary: Abel is neither reckless nor timid. He spent what he found cheap, Alphabet at a fair price and Berkshire shares below intrinsic value. The real test is not the spending pace but the returns. Watch Berkshire's operating profit next quarter. If it grows without a market rally, Abel’s moves will speak for themselves.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
