NEW YORK, August 22, 2026, 11:16 a.m. EDT
- Berkshire invested approximately $24.3 billion in equities and share repurchases during the second quarter.
- The purchases halted a streak of 14 consecutive quarters with net equity sales.
- BRK.B ended Friday at $495.82, slipping 0.21%, as VOO advanced 0.39%.
- Buffett’s caution is aimed at speculation rather than the entire equity market.
Berkshire Hathaway Inc. NYSE:BRK.B invested around $24.3 billion in public equities and repurchasing its own stock during the previous quarter. The move adds complexity to renewed cautions regarding Warren Buffett’s worries about speculation in the markets.
The investor message is discernment, not withdrawal. Berkshire acquired $23.5 billion in equities, divested $3.7 billion, and bought back $4.5 billion of its own stock. Net deployment totaled approximately $24.3 billion.
The shift was abrupt. Prior to April, Berkshire was a net equity seller for 14 straight quarters. The company’s filing for the second quarter indicates its substantial cash reserves remained after this reversal.
| Q2 capital action | Amount | Investor read |
|---|---|---|
| Equity purchases | $23.5 billion | Highest total commitment |
| Equity sales | $3.7 billion | Continued portfolio reduction |
| Net equity buying | $19.8 billion | First quarter net buying after 15 quarters absent |
| Berkshire buybacks | $4.5 billion | Management identified value at BRK |
| Combined net deployment | $24.3 billion | Risk was selectively added |
Buffett’s comment did not amount to a direct prediction of a crash. “We’ve never had people in a more gambling mood than now,” he stated during Berkshire’s May gathering. This comment reappeared in market reports this week. CNBC Warren Buffett Archive
The acquisition data provides the additional context. Berkshire raised its stake in Alphabet Inc. NASDAQ:GOOGL by 83%, bringing its total to almost 106 million shares. As of June 30, the holding was valued at approximately $37.8 billion.
Alphabet rose to become Berkshire’s third-biggest publicly traded holding. Apple Inc. NASDAQ:AAPL held the top spot with approximately $66 billion. American Express Co. NYSE:AXP was second with close to $51.3 billion.
| Operating earnings | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Total operating earnings | $12.98 billion | $11.16 billion | +16.3% |
| Insurance underwriting | $1.73 billion | $1.99 billion | -13.1% |
| Insurance investment income | $3.06 billion | $3.37 billion | -9.1% |
| BNSF | $1.56 billion | $1.47 billion | +6.3% |
| Berkshire Hathaway Energy | $0.89 billion | $0.70 billion | +26.9% |
| Manufacturing, service and retail | $4.47 billion | $3.60 billion | +24.1% |
Proceeds from operations supported the transition. Operating profit in the second quarter increased 16% to $12.98 billion. Profit from manufacturing, service and retail jumped 24%, and earnings in the energy sector grew 27%.
Insurance performance weakened. Underwriting profits declined by 13%, while investment income from insurance dipped 9%. These decreases prevent the earnings mix from appearing consistently robust.
Berkshire’s insurance and related operations reported $359.2 billion in cash, equivalents and Treasury bills as of June 30, a decrease from $373.5 billion at March 31 based on the company’s standard net calculation. The sum remained nearly 15 times greater than the net amount spent on stock purchases during the quarter.
| Analyst | Rating | Target | Date | Vs. $495.82 close |
|---|---|---|---|---|
| Brian Meredith, UBS | Buy | $604 | Aug. 10, 2026 | +21.8% |
| Meyer Shields, KBW | Underperform | $490 B-share equivalent | Aug. 10, 2026 | -1.2% |
| S&P Global poll, 4 analysts | Hold | $533 B-share equivalent | Aug. 2026 | +7.5% |
Opinions differ on Wall Street. UBS projects an approximate 22% increase to its $604 price target for Class B shares. KBW’s target for Class A equates to about $490, just under Friday’s closing level.
BRK.B closed Friday at $495.82, falling 0.21%. The Vanguard S&P 500 ETF NYSEARCA:VOO rose 0.39%, putting Berkshire 0.60 percentage point lower in comparison. The share price remained 7.8% under its 52-week peak.
The focus now shifts to execution. Investors will monitor if the Alphabet investment, share repurchases, and the acquisition of Taylor Morrison in July generate stronger returns than Berkshire’s Treasury assets.
Risks: Equity markets might decline even with Berkshire increasing its holdings. Insurance losses could escalate, and major acquisitions might underperform. Buffett’s caution could also be interpreted as a prediction instead of prudent guidance.
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