Berkshire Hathaway Shifts to Buying Mode Under Greg Abel

Greg Abel's first quarter as Berkshire Hathaway's CEO has brought about a significant shift in capital allocation. After 14 quarters of selling more stocks than buying, the company has started buying again. In fact, it bought $23.5 billion worth of stocks while selling only $3.7 billion, leaving a net equity purchase of nearly $20 billion. This is the first quarter as a net buyer of stocks in over three years and the largest quarterly outlay since 2022.

The buying spree has focused on several key areas, with Alphabet emerging as the most significant addition to Berkshire's portfolio. The company invested $10 billion in Alphabet, which now makes up 8.8% of Berkshire's listed stock portfolio. This investment is tied to Alphabet's artificial intelligence infrastructure buildout and has grown significantly, rising 224% in one quarter. Apple remains the largest holding but its dominance has reduced sharply, from over half of the portfolio to just 20%. American Express and Coca-Cola are also among the top holdings.

The change in capital allocation is a significant departure from the cautious approach taken by Berkshire under Warren Buffett's leadership. Between 2022 and 2024, the company sold $172.9 billion more in stocks than it bought. However, under Abel's leadership, Berkshire has opened its coffers, repurchasing $4.5 billion of its own shares in the second quarter.