Few events garner more attention on Wall Street than Berkshire Hathaway‘s (NYSE:BRKA)(NYSE:BRKB) earnings reports. This is especially true now that Warren Buffett has retired and his successor, Greg Abel, is overseeing the company’s day-to-day operations and its closely watched $359 billion investment portfolio.
While the September-ended quarter was more or less business as usual for the trillion-dollar conglomerate that Buffett built, with Berkshire recording $12.7 billion in operating earnings, another figure stole the show. Namely, a $9.6 billion purchase of the Oracle of Omaha’s favorite stock by Abel.
Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
The Oracle of Omaha’s favorite stock is back on the menu. Image source: Getty Images.
Berkshire’s bosses have spent $92 billion buying this stock since mid-2018
Through the first half of 2026, Abel’s headline buy was Google parent Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG). While Buffett initiated the position in Alphabet before his retirement, it was Abel who grew it into a top-three holding at one point. Berkshire’s new boss has put tech on the menu in a way that wasn’t seen under Buffett.
But it wasn’t a tech purchase that raised eyebrows in the third quarter. In fact, you won’t even find evidence of this purchase in Berkshire Hathaway’s quarterly Form 13F, which should be filed on Nov. 16.
In Berkshire’s third-quarter operating results, on the final page before the executive certifications, the company details Abel’s purchase activity in the stock Buffett holds nearest and dearest to his heart… Berkshire Hathaway.
Between July 1 and Sept. 30, Abel oversaw the purchase of 4,536 Class A shares (BRKA) and 12,384,959 Class B shares (BRKA), totaling approximately $9.6 billion. This more than doubles the $4.53 billion spent on share buybacks in the second quarter and brings cumulative share repurchases between Buffett and Abel since mid-2018 to approximately $92 billion.
As long as Berkshire Hathaway has at least $30 billion in combined cash, cash equivalents, and U.S. Treasury bills on its balance sheet — it closed out September 2026 with $377.4 billion — and Abel believes the company’s shares are intrinsically cheap, buybacks can be made with no end date or ceiling.
Image source: Getty Images.
Share buybacks are picking up in a big way at Berkshire Hathaway
Since Berkshire Hathaway doesn’t pay a dividend, buybacks are a direct way to reward its shareholders (in case a greater-than-6,000,000% outperformance of the S&P 500 since the mid-1960s wasn’t enough). Buybacks encourage the long-term investing ethos that Buffett values and can incrementally increase investors’ ownership stakes over time.
A hearty share repurchase program can also make a company’s stock more attractive to fundamentally-focused investors. Companies with steady or growing net income and a declining outstanding share count, courtesy of an ongoing buyback program, should see earnings per share rise over time.
An aggressive share buyback program can also signal to Wall Street and investors that management sees value in their company’s stock.
Over Warren Buffett’s final 19 months as CEO, as well as during Abel’s first two months at the helm, not one penny was used for buybacks. During this 21-month period, Berkshire’s stock predominantly traded at a 60% to 80% premium to its book value. Since mid-2018, Berkshire’s bosses have consistently green-lit buybacks when its shares trade at less than a 50% premium to book value. For context, shares have oscillated between a 40% and 50% premium over the previous two quarters.
Even though Buffett and Abel have been decisive net sellers of stocks over the last four years, Buffett’s favorite stock is clearly on the menu.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $344,878!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,097,846!*
Now, it’s worth noting Stock Advisor’s total average return is 852% — a market-crushing outperformance compared to 208% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Sean Williams has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Berkshire Hathaway. The Motley Fool has a disclosure policy.
