Buffett’s successor is changing how Berkshire allocates its capital.
On November 7, Berkshire released its latest earnings report, showing that it had repurchased $9.6 billion of its own shares in the third quarter, then added another roughly $2 billion in October.
In just four months, total buybacks amounted to about $11.6 billion.
Meanwhile, the company’s third-quarter operating profit fell 6%, and net income fell 28%. Yet as of the end of September, it still held $356.9 billion in cash and cash equivalents.
Interestingly, while global tech stocks have faced a massive sell-off, Berkshire shares have recently hit an all-time high.
New CEO Greg Abel is clearly more willing than Buffett was before his retirement to deploy the company’s huge cash reserves.
Even after making large-scale buybacks, however, Berkshire still holds more than $350 billion in cash.
As markets begin to worry that AI valuations are too high, this approach to capital allocation is worth examining.
$BRKBB $QQQB $BTC
On November 7, Berkshire released its latest earnings report, showing that it had repurchased $9.6 billion of its own shares in the third quarter, then added another roughly $2 billion in October.
In just four months, total buybacks amounted to about $11.6 billion.
Meanwhile, the company’s third-quarter operating profit fell 6%, and net income fell 28%. Yet as of the end of September, it still held $356.9 billion in cash and cash equivalents.
Interestingly, while global tech stocks have faced a massive sell-off, Berkshire shares have recently hit an all-time high.
New CEO Greg Abel is clearly more willing than Buffett was before his retirement to deploy the company’s huge cash reserves.
Even after making large-scale buybacks, however, Berkshire still holds more than $350 billion in cash.
As markets begin to worry that AI valuations are too high, this approach to capital allocation is worth examining.
$BRKBB $QQQB $BTC