Berkshire Hathaway (BRK.A / BRK.B) increased its stock buybacks during this year’s second quarter to $4.5 billion U.S.
The latest share repurchases were a dramatic acceleration from the $235 million U.S. spent on stock buybacks in the year’s first quarter.
The stock buybacks were increased as Berkshire’s new CEO Greg Abel, age 64, looks to put the company’s massive cash pile to work.
The conglomerate previously led by Warren Buffett saw its cash pile decline to $365.5 billion U.S. at the end of June from a record $397.4 billion U.S. three months earlier.
Under Abel’s direction, Berkshire Hathaway became a net buyer of stocks in the second quarter, purchasing $20 billion U.S. of equities.
The company had previously been a net seller of stocks for 14 consecutive quarters.
Which stocks Berkshire bought in the second quarter will be disclosed in the company’s next 13F regulatory filing with the U.S. Securities and Exchange Commission (SEC) on Aug. 14.
One of Berkshire Hathaway’s more recent stock purchases has been Google parent company Alphabet (GOOGL). Berkshire disclosed a $10 billion U.S. investment in Alphabet in Q1.
Details of Berkshire’s stock buybacks and equity purchases were disclosed in the company’s second-quarter financial results.
The company disclosed that its operating earnings climbed 16% in the second quarter due to strength across its energy, railroad, and manufacturing businesses.
Operating earnings rose to $12.98 billion U.S. from $11.16 billion U.S. a year earlier.
Manufacturing, service, and retailing earnings jumped 24%, while Berkshire Hathaway Energy’s profit surged 27%. BNSF, the company’s railroad, posted 6% growth.
On the flipside, insurance was a weak spot for Berkshire, with underwriting earnings declining 13% to $1.73 billion U.S. Insurance investment income declined 9% to $3.06 billion U.S. in Q2.
Berkshire Hathaway recently completed its $6.8 billion U.S. acquisition of homebuilder Taylor Morrison Home Corp.
Berkshire’s more affordable Class B stock has risen 12% in the last year to trade at $521.80 U.S. per share.
