For twelve straight quarters, Berkshire Hathaway sold more stock than it bought. That streak just broke. In its Q2 2026 disclosures, Berkshire reported $23.5 billion of net equity purchases — its first net-buying quarter since early 2023 — and the first major capital-allocation signal from new CEO Greg Abel since Warren Buffett stepped back from the top role.
The market reaction has been muted. Class B shares (BRK.B) closed August 11 at $516.38, giving Berkshire a market cap of roughly $1.11 trillion. Year-to-date the stock is up just 2.7% versus 12.9% for the S&P 500, per Yahoo Finance. Investors seem to be waiting to see whether Abel’s shift in tone translates into a durable strategy — or a one-quarter blip.
What actually happened in the quarter
According to reporting on Berkshire’s Q2 disclosures, the conglomerate was a net buyer of $23.5 billion in equities during the quarter — a sharp reversal from every quarter since early 2023, when the company began systematically trimming its largest holdings (notably Apple, Bank of America, and Chevron) and stockpiling short-dated Treasury bills.
Cash and equivalents — the pile that became Wall Street’s favorite scoreboard for Buffett-era discipline — still ended Q2 at $365.5 billion, essentially unchanged from Q1. Operating earnings (excluding investment gains) rose about 16% year over year. So the $23.5 billion of buying was funded largely out of ongoing cash flow, not from drawing down the T-bill hoard.
Why this matters
Three reasons this quarter is more than a bookkeeping curiosity:
- It’s a new CEO’s first move. Buffett announced in May 2025 that Abel would take over as CEO at year-end; Q2 2026 is the first clean quarter in which Abel — not Buffett — chaired the capital-allocation meetings. A change from a 12-quarter selling streak on the very first quarter of new leadership is a signal.
- It resets the “Buffett indicator” narrative. For two years, the fact that Berkshire was a persistent net seller was cited as evidence that the market was expensive by long-run standards. A shift to net buying — even a modest one relative to the $365B cash pile — undercuts that framing.
- It happened without giving up the fortress. Cash levels held near record highs. Abel is deploying at the margin, not opening the floodgates.
Berkshire at a glance — Q2 2026
| Metric | Value | Notes |
|---|---|---|
| Net equity purchases (Q2) | $23.5B | First net-buying quarter in 3+ years |
| Cash & T-bills | $365.5B | Essentially flat vs Q1 2026 |
| Operating earnings growth YoY | +16% | Insurance + BNSF drove the gain |
| Market cap (Aug 11 close) | ~$1.11T | BRK.B at $516.38 |
| BRK.B YTD return | +2.7% | S&P 500: +12.9% YTD |
| Cash as % of market cap | ~33% | Historically extreme; leaves runway to deploy more |
The relative-performance gap
Berkshire’s 2026 lag has been a talking point among value investors. The gap is not enormous by historical standards, but it is meaningful — and it is one reason Abel is under pressure to show what he plans to do with the cash.
The bear case: Burry vs Abel
Not everyone views the deployment as good news. Investor Michael Burry — best known publicly for his subprime short and, more recently, for regular criticism of megacap AI valuations — argued on X that Abel “lacks Buffett’s patience for the fat pitch,” per Yahoo Finance reporting. The critique: Buffett’s edge was waiting years for asymmetric, obvious-in-hindsight setups (2008 GS/BAC, 2020 Japan trading houses). Abel deploying $23.5 billion into a market at 12%+ YTD gains and record profit margins looks — to Burry — like the opposite of that discipline.
The counter-argument: $23.5 billion is roughly 6% of Berkshire’s cash pile. That is not a “fat pitch” swing. It is a measured recalibration by a new CEO who wants his equity portfolio to compound, not just accumulate T-bill interest at falling short rates. Both readings are internally consistent; the tape will decide.
What to watch
- The Q2 13F (filed 45 days after quarter-end) will name the specific stocks Berkshire bought and sold. That is where investors will find out whether Abel is adding to legacy positions (Apple, Occidental, Japanese trading houses) or opening new ones.
- Q3 2026 buying pace. A single quarter of net buying is a data point. Two would be a trend. Three would formally end the “Berkshire is bearish on stocks” narrative.
- Buyback activity. If Berkshire also stepped up repurchases of its own shares in Q2, that would signal Abel views BRK itself as underpriced — a self-consistent bull case that would help close the 10-point gap with the S&P.
Sources
- Berkshire Hathaway Investor Relations — Q2 2026 10-Q (cash position, operating earnings)
- Yahoo Finance — BRK-B quote (price, market cap, YTD)
- Yahoo Finance — S&P 500 (^GSPC) (YTD benchmark)
- SEC EDGAR — Berkshire 13F filings (position-level disclosure, filed 45 days after quarter-end)
Disclosure: This article is for informational purposes only and is not investment advice.