Berkshire Hathaway's cash pile shrank in the second quarter as new CEO Greg Abel put money to work buying back shares and adding to stock holdings. The company also posted net income more than double last year's total and closed its acquisition of Taylor Morrison Home Corporation.
Berkshire Hathaway's cash and Treasury bills fell to $365.5 billion at the end of June, down from $397.4 billion at the end of March, the company said in its latest earnings report on Saturday. The drop marks a shift for a firm that spent years building up its stock market cash reserves under Warren Buffett.
Buybacks and stock purchases resume
The company said the cash went toward repurchasing its own shares and buying stocks. The last time Berkshire bought more stocks than it sold was in 2022. Coca-Cola, American Express, Bank of America, Alphabet, and Apple remain among its largest holdings.
Berkshire also completed its acquisition of Taylor Morrison Home Corporation on July 24, though it did not disclose a valuation for the deal.
Net income more than doubles
Net income reached $25.6 billion, more than double the $12.3 billion recorded a year earlier. Buffett retired as CEO last December, and Abel officially took the helm in January.
In a February letter to shareholders, Abel said Berkshire weighs each opportunity by how much it can grow the company's per-share intrinsic value over time. In that same letter, Abel wrote: "We continue to evaluate many opportunities and will remain patient and disciplined". Abel added that Berkshire is proud of its nimble culture, which lets it consider and make thoughtful investments.
Source: Business Insider
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