Berkshire Hathaway has reduced its "cash cushion" for the first time in four years

Berkshire Hathaway, led by new CEO Greg Abel, reduced its cash reserves in the second quarter, according to a report released on August 8.

As of the end of June, Berkshire had $364.7 billion in cash and short-term government bonds on its balance sheet—4% less than in the previous quarter. Berkshire’s “cash cushion” has shrunk for the first time in four years, notes The Wall Street Journal.

Among Berkshire's largest transactions last quarter were an additional $10 billion investment in Alphabet shares and the $6.8 billion acquisition of homebuilder Taylor Morrison Homes. In addition, Berkshire repurchased approximately $4.5 billion of its own shares.

In total, the company purchased $23.5 billion worth of shares on the stock market and sold $3.7 billion worth. As the WSJ notes, this is the first time in more than three years that the value of purchases has exceeded the value of sales. The largest holdings in Berkshire’s portfolio are Alphabet, American Express, Apple, Bank of America, and Coca-Cola.

The conglomerate’s net income in the second quarter rose to $25.67 billion—more than double the figure for the same quarter last year. Operating profit, which Berkshire Chairman Warren Buffett considers a more accurate measure of the company’s performance, rose 16.3% to $12.98 billion.

Analysts view the use of the “cash cushion” in the second quarter as the new CEO’s first independent moves, according to the WSJ. Greg Abel took over the position in January, succeeding Buffett, who had led the company for 60 years. At the same time, some analysts who track Berkshire note that the task of investing a significantly larger portion of the accumulated cash remains challenging.

“It’s very difficult to expect Greg to make major deals in such a volatile market,” says Paul Lountzis, president of Lountzis Asset Management, which holds shares in Berkshire. “The private deal market is crazy, and the public market isn’t exactly rational either.”

Berkshire shares have gained 3.4% since the start of the year, but remain slightly below the record high of $809,350 per Class A share set in early May 2025—shortly before Buffett announced his retirement.

______________________

In the “Guru Portfolios” section on Oninvest, you can track the composition and changes in the portfolios of the world’s largest investors and funds. The service allows you to analyze the largest holdings, new ideas, and changes in asset allocations based on 13F filings, as well as compare portfolio performance over time.

This article was AI-translated and verified by a human editor