Berkshire Hathaway Flips Back to Net Buying After Fourteen Quarters of Selling

Berkshire Hathaway swung to net buying in Q2 2026, deploying $20B into stocks including Alphabet, Delta, and Lennar, while operating earnings rose 16%.

The second quarter of 2026 marked a decisive shift in Omaha. After more than three years of trimming positions and hoarding cash, Berkshire Hathaway swung back to the offensive, deploying roughly $20 billion net into new equity stakes under the stewardship of CEO Greg Abel.

The numbers tell the story of a conglomerate in transition. Berkshire purchased $23.5 billion worth of stock during the period while offloading just $3.7 billion — a stark reversal from the prolonged net-selling posture that defined the post-pandemic era. The buying spree was funded, at least in part, from the company's formidable war chest, which still stands at approximately $365 billion in cash and Treasury holdings.

A Portfolio Reshaped

Abel's fingerprints are all over the repositioning. The most consequential move came late in August with a $17 billion commitment to Alphabet, including a $10 billion private placement earmarked for artificial intelligence infrastructure financing. Notably, Berkshire has yet to formally confirm that the direct share purchase has been completed, leaving a loose end for investors to track.

Aviation and housing also featured prominently. The Delta Air Lines stake grew by 44 percent to 57.3 million shares, valued at roughly $5.4 billion, while the position in homebuilder Lennar expanded about 30 percent to 13.4 million shares worth nearly $1.2 billion. The July completion of the $6.8 billion all-cash acquisition of Taylor Morrison Home Corporation — priced at $72.50 per share — underscores a deliberate tilt toward real estate that contrasts sharply with the portfolio's composition in prior years.

The trimming was equally telling. Constellation Brands was exited entirely, while positions in Capital One, Kroger, Nucor, Ally Financial, Bank of America, DaVita, Macy's and the New York Times were either reduced or adjusted. Macy's and the Times, notably, saw increases rather than cuts.

Operating Strength, Insurance Weakness

The underlying business performance supports the strategic pivot. Operating earnings climbed 16 percent year over year to $12.98 billion, with net income reaching $25.67 billion. Segment detail reveals where the momentum lies: manufacturing, service and retail operations surged 24 percent to $4.47 billion, Berkshire Hathaway Energy improved 27 percent to $891 million, and the BNSF railroad advanced 6 percent to $1.56 billion.

Insurance, the traditional engine room, proved the laggard. Underwriting income fell 13 percent to $1.73 billion, while investment income from the insurance operations slipped 9 percent to $3.06 billion. The insurance float nonetheless edged higher to roughly $177.5 billion as of June 30, a gain of about $1.1 billion since year-end 2025.

Per-share earnings for the B-class stock came in at $6.02, comfortably ahead of the $5.13 analysts had penciled in. Revenue for the quarter reached a record $101.8 billion.

Buybacks and Legal Closure

Shareholder returns also got a boost. Berkshire repurchased approximately $4.5 billion of its own stock in the second quarter — the largest quarterly buyback since 2021 — with another $3.3 billion added in July. The first-half total now sits at around $4.8 billion.

On the legal front, a St. Louis appeals court in late August upheld the 2024 settlement in the class action against Berkshire subsidiary HomeServices of America over real estate commission antitrust allegations. The company's share of the settlement stands at $250 million out of a total exceeding $1 billion.

Market Reaction Muted

Wall Street has yet to reward the repositioning in any meaningful way. The stock closed Friday at 654,000.00 euros, up 0.9 percent on the day, but remains 4.7 percent below its 52-week high of 686,000.00 euros reached on August 10. The shares are hovering near their 50-day moving average of 655,850.00 euros, with a year-to-date gain of 2.7 percent.

Analyst sentiment is cautiously constructive. UBS raised its price target to $604 from $585 on Tuesday while maintaining a buy rating, citing the record revenue and Abel's aggressive capital deployment. Zacks, by contrast, holds at "neutral," noting the stock trades at 1.44 times book value versus an industry average of 1.43.

What's Next

Abel is slated to visit Japan in September for meetings with the trading houses Mitsubishi, Mitsui, Marubeni, Itochu and Sumitomo — a trip that could signal further international ambitions. Meanwhile, AM Best upgraded its outlook on Berkshire subsidiary GUARD Insurance Companies from negative to stable, citing an operational turnaround.

Warren Buffett, who turned 96 on the day the primary article was published, remains involved in an advisory capacity and with select investment decisions, according to company statements. The next major checkpoint arrives November 6, when third-quarter results are due, with analysts forecasting average earnings per share of $5.66.