Berkshire Hathaway Inc. repurchased $4.5 billion of its own shares in the second quarter, marking the largest quarterly payout since 2021, the company said. The Omaha-based conglomerate reported operating earnings of nearly $13 billion for the quarter ended June, a 16% increase driven by gains in its manufacturing, service, and retail divisions, according to livemint.com.
The company’s cash reserves declined to $365.5 billion in Q2 from nearly $400 billion at the end of March as CEO Greg Abel deployed capital aggressively. Alongside the share buyback, Berkshire invested $10 billion in Alphabet, Google’s parent company, and purchased over $24 billion in commercial, industrial, and other stocks, though the specific holdings will be disclosed in a later filing, per livemint.com.
This activity reflects a shift under Abel’s leadership since he took over as CEO in January, with shareholders praising his capital allocation strategy. The buyback and investments come amid a broader trend of large conglomerates returning cash to shareholders while seeking growth opportunities. Berkshire’s $4.5 billion buyback is the largest since 2021, underscoring its commitment to shareholder returns amid strong earnings performance.
Berkshire Hathaway’s second-quarter earnings report, released Saturday, also highlighted the company’s net equity purchases nearing $20 billion during the period. The firm’s next public disclosure will include detailed information on its recent stock acquisitions, providing further insight into its investment strategy under Abel’s management.