Berkshire ended June with $365.5B in cash, down $31.9B after Abel bought back shares and bought stocks for the first time since 2022.
Berkshire Hathaway ended June with $365.5 billion in cash and Treasury bills, a drop of roughly $32 billion from the $397.4 billion on hand at the end of March. Net income reached $25.6 billion, more than double the $12.3 billion reported in the same quarter a year earlier.
The cash went toward share repurchases and stock purchases, making the quarter the first since 2022 in which Berkshire bought more equities than it sold. The firm also closed its acquisition of Taylor Morrison Home Corp. on July 24, without disclosing a valuation in the earnings report.
The deployment is the first under Greg Abel, who became chief executive in January after Warren Buffett retired in December. In his February letter to shareholders, Abel said the company evaluates each opportunity based on its potential to grow Berkshire's intrinsic value per share "over a time horizon measured in perpetuity."
Abel pushed back on the view that a large cash pile signals a retreat from investing. "Many times in Berkshire's history, some observers have suggested that our substantial cash position signals a retreat from investing. It does not," he wrote. He cited Berkshire's "nimble culture," which lets it consider and make thoughtful investments.
Berkshire's largest holdings include Coca-Cola, American Express, Bank of America, Alphabet, and Apple. The BRK.B stock page shows an Alpha Score of 53, labeled Mixed, while Coca-Cola's stock page carries an Alpha Score of 62, Moderate.
The cash pile had been a hallmark of Buffett's final years, with the company accumulating liquidity rather than deploying it. Taylor Morrison adds homebuilding to Berkshire's portfolio, a sector tied to housing supply and mortgage rates. The report gave no indication of what Berkshire paid.
"We continue to evaluate many opportunities and will remain patient and disciplined in pursuing the right ones for the benefit of our owners," Abel wrote.
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