Berkshire Hathaway CEO Greg Abel deployed $9.6bn to repurchase company shares in Q3 2026, marking a record quarterly purchase and the third consecutive quarter of buybacks. This follows roughly $4.7bn spent in the first half of 2026. Analysts interpret the move as Abel signaling that the conglomerate's stock is undervalued, especially as shares had previously lagged the S&P 500.
Abel, who succeeded Warren Buffett earlier this year, is seen as bolstering investor confidence in Berkshire's diversified businesses. The company's financial performance dipped in the quarter, with quarterly operating income falling 5.8% year-on-year to $12.7bn. This decline was primarily driven by a 43% drop in underwriting earnings at the flagship insurance business, Geico, which struggled with rising advertising and operational expenses amid inflationary pressures.
Foreign exchange losses on US dollar-denominated debt further weighed on results. Despite the quarterly dip, Berkshire's stock portfolio grew to $336bn, up 12.7% year-on-year. A further $2bn in estimated buybacks post-quarter would bring annual spending past $16bn.
The company remained a net seller of shares, offloading $426mn net in the quarter, while its cash reserve slightly decreased to $357bn. Investors view the stock as a "safe, bulletproof balance sheet" amid market volatility.
Source: Financial Times Companies · Summarized by HeadlinesBriefing