Berkshire's cash pile fell for the first time in 4 years as Q2 profits doubled to $25.7B. The company added $10B in Alphabet shares and bought Taylor Morrison for $6.8B. Buffett's retirement raises questions about future capital deployment.
Berkshire Hathaway's cash pile fell for the first time in four years as the conglomerate reported a surge in second-quarter profits that more than doubled.
Net income reached $25.67 billion, up from $12.37 billion a year earlier, according to the company's earnings release cited by The Wall Street Journal. Operating earnings, which exclude investment gains, rose 16.3% to $12.98 billion.
The cash decline comes after a period of rapid accumulation. At the end of June, Berkshire held $364.7 billion in cash and Treasury bills, down 4% from the previous quarter once short-term government securities obligations were factored in.
Spending drove the drop. The company completed its $6.8 billion acquisition of homebuilder Taylor Morrison on July 24 at $72.50 per share. It also added $10 billion in Alphabet (GOOGL) shares as part of $23.5 billion in total equity purchases during the quarter. At the same time, Berkshire sold $3.7 billion in equities.
Stock repurchases of Class A and Class B shares totaled about $4.5 billion in the period.
Berkshire's top holdings now include Alphabet alongside American Express (AXP), Apple (AAPL), Bank of America (BAC) and Coca-Cola (KO). The value of its Class A shares closed recently at $780,086, up 3.4% year to date but 3.6% below the all-time high of $809,350 reached in early May 2025, just before Warren Buffett announced his retirement.
For a company that built its reputation on hoarding cash for a rainy day, the drawdown marks a shift. The Taylor Morrison deal and the Alphabet stake are both large, single-stock bets that carry concentration risk. The buyback program, meanwhile, continues to shrink the share count at a steady clip.
Berkshire's BRK.B stock page shows an Alpha Score of 51 out of 100, labeled Mixed, reflecting the tension between strong earnings momentum and a portfolio that is increasingly tied to a handful of mega-cap names. The KO stock page carries a similar 50 score, while the broader stock market analysis page tracks sector rotation trends that could affect Berkshire's insurance and energy businesses.
The retirement of Buffett, who had led the company for six decades, adds another layer of uncertainty. Without his presence, the pace of large acquisitions, share repurchases, and portfolio turnover could change. The new leadership team has not signaled a different strategy, but the cash drawdown suggests they are willing to deploy capital more aggressively than in the Buffett era.
Next quarter's filing will show whether the cash pile stabilizes or continues to shrink. The company holds its annual meeting in Omaha in May.
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