Berkshire Hathaway repurchased $9.6 billion in shares during the third quarter of 2026. This marks a big increase in buybacks under new CEO Greg Abel. This activity took place despite a 5.8% drop in operating earnings to $12.7 billion compared to the same period last year, according to a report from Moneycontrol.
Key Details
Abel took over as CEO from Warren Buffett at the end of 2025 and became chairman in September 2026. He has changed Berkshire's strategy. The company was a net seller of stocks last quarter. It bought $2.4 billion worth and sold $2.8 billion. This is a big drop from a net $20 billion in stock purchases in the previous quarter, as reported by Business Insider. Berkshire's cash reserves fell by about $8 billion to $357 billion after accounting for Treasury payables.
Background
The rise in buybacks has led to an increase in Berkshire's stock price. It went up from below $500 at the end of September to over $570 this week. David Kass, a finance professor and Berkshire analyst, said the buyback strategy under Abel shows a cautious approach to current market valuations. He called it a "pleasant surprise." However, the decline in operating income was due to lower insurance underwriting and investment income. This offset gains from other businesses, including BNSF Railway and Berkshire Hathaway Energy.
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The increase in buybacks and the drop in operating income may affect how investors feel about Berkshire Hathaway shares. This is especially true as the company adjusts to its new leadership and market conditions. Investors will be watching for the upcoming quarterly earnings report to see how effective Abel's strategies are and if there will be further changes in Berkshire's investment approach.
Based on reporting by: moneycontrol.com, businessinsider.com