Berkshire Finally Starts Buying Stocks! 'Buffett's Successor' Invests $20 Billion, Focusing on This Key Stock

Berkshire Hathaway, following the retirement of 'Oracle of Omaha' Warren Buffett, has transitioned leadership to new CEO Greg Abel. The company's latest Q2 financial report reveals not only a surge in operating profits but also the end of 14 consecutive quarters of net stock sales, as Berkshire begins actively deploying its massive cash reserves into stock purchases—drawing significant market attention.

According to international media reports, Berkshire's Q2 profit rose 16% year-on-year to $12.98 billion. The company bought approximately $23.5 billion in stocks and sold about $3.7 billion, resulting in a net purchase of around $20 billion—officially ending its 14-quarter streak of net stock sales.

Which stock did Berkshire primarily buy?

Reuters reported that Berkshire invested $10 billion to increase its stake in Alphabet, the parent company of Google. This positions Alphabet as one of Berkshire's largest holdings, alongside American Express, Apple, Bank of America, and Coca-Cola.

This marks the second quarter since Abel took over as CEO, although Buffett remains chairman. Cathy Seifert, an analyst who rates Berkshire as 'Neutral,' said, 'This is a remarkably healthy and better-than-expected performance—investors will be encouraged. We're gradually seeing Abel step into his role as the new leader.'

Is Abel charting a different course from Buffett? Market observers watch Abel's strategy

Investors and analysts have been closely watching how Abel's capital allocation approach might differ from Buffett's. Just three months ago, Berkshire's cash position hit a record high of $380.2 billion. In Buffett's final years, effectively deploying this massive cash pile became a key challenge.

Macrae Sykes, portfolio manager at Gabelli Funds, said, 'Buffett and Abel are both exceptional investors, and their decision to buy back shares gives me greater confidence in Berkshire's current value and future intrinsic growth.' However, some market voices remain cautious. Financial media The Motley Fool argued that with cash still at $365 billion, this move is merely a 'test the waters' effort relative to the company's overall scale.