Now Reading: Greg Abel begins deploying Berkshire’s $365.5 billion cash pile
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Greg Abel begins deploying Berkshire’s $365.5 billion cash pile
Berkshire Hathaway's cash pile fell from $397.4 billion to $365.5 billion in the June quarter, signalling a shift under new CEO Greg Abel. The company bought back nearly $4.5 billion of its…
The Story in Brief
Berkshire Hathaway's cash pile fell from $397.4 billion to $365.5 billion in the June quarter, signalling a shift under new CEO Greg Abel. The company bought back nearly $4.5 billion of its own shares and purchased roughly $20 billion more in stocks than it sold, ending a 14-quarter streak of net selling. Notable purchases included a $10 billion stake in Alphabet. Operating profit rose 16% to $12.98 billion, beating estimates. Abel took over as CEO in January, while Warren Buffett remains chairman.
The Indian Opinion
Commentators are framing this as a dramatic break from Buffett's patient approach, but the move is more nuanced. Abel bought back shares, a classic Buffett move, and added to an existing Alphabet stake, not a radical new direction. The real test for Abel will come when he makes a large, wholly new acquisition, something Buffett never did at this scale. The next major deal, and its pricing relative to intrinsic value, will reveal how much Abel's strategy truly differs from his predecessor's.
Source: livemint.com
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