Greg Abel took over as CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) at the start of 2026. Former CEO Warren Buffett left Abel a huge gift: nearly $400 billion in cash on the company's balance sheet. Abel has put some of that cash to work buying Taylor Morrison Home, and some has been spent on publicly traded stock investments. However, Abel has also decided to buy back Berkshire Hathaway stock. That could be a positive sign. Here's why.
Under Warren Buffett, Berkshire Hathaway didn't make a habit of buying back stock. The world-famous investor preferred to put cash to work by buying shares in other companies or buying companies outright. When he did buy back Berkshire Hathaway stock, it was because he believed the shares were undervalued.
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This dynamic is clearly explained in the company's 2025 10k, where the company states: "Berkshire's common stock repurchase program currently permits Berkshire to repurchase shares any time that Berkshire's Chief Executive Officer, after consultation with the Chairman of the Board, believes that the repurchase price is below Berkshire's intrinsic value, conservatively determined." The only limit on repurchase activity is that it can't reduce the company's cash and short-term investment balance below $30 billion.
Some market watchers had hypothesized that Berkshire Hathaway bought as much as $11 billion of its own stock in the second quarter, but the real number turned out to be roughly $4.5 billion. That said, the number was still quite large and, even then, given the huge cash balance the company has, it didn't put the company anywhere near the $30 billion cash limitation.
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Under Warren Buffett, Berkshire Hathaway didn't make a habit of buying back stock. The world-famous investor preferred to put cash to work by buying shares in other companies or buying companies outright. When he did buy back Berkshire Hathaway stock, it was because he believed the shares were undervalued.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
This dynamic is clearly explained in the company's 2025 10k, where the company states: "Berkshire's common stock repurchase program currently permits Berkshire to repurchase shares any time that Berkshire's Chief Executive Officer, after consultation with the Chairman of the Board, believes that the repurchase price is below Berkshire's intrinsic value, conservatively determined." The only limit on repurchase activity is that it can't reduce the company's cash and short-term investment balance below $30 billion.
Some market watchers had hypothesized that Berkshire Hathaway bought as much as $11 billion of its own stock in the second quarter, but the real number turned out to be roughly $4.5 billion. That said, the number was still quite large and, even then, given the huge cash balance the company has, it didn't put the company anywhere near the $30 billion cash limitation.
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