Berkshire earnings rose last quarter and CEO Greg Abel is starting to deploy Buffett's massive cash hoard - CNBC

Berkshire Hathaway's operating earnings rose 16% in the second quarter to $12.98 billion, up from $11.16 billion a year earlier, driven by strength in its energy, railroad and manufacturing units.
Manufacturing, service and retailing earnings jumped 24% to $4.47 billion, Berkshire Hathaway Energy's profit climbed 27% to $891 million, and BNSF railroad rose 6% to $1.56 billion.
Insurance was the weak spot, with underwriting earnings falling 13% to $1.73 billion and insurance investment income declining 9% to $3.06 billion.
CEO Greg Abel, 64, who took over from Warren Buffett at the start of 2026, began deploying the record cash hoard, repurchasing about $4.5 billion of Berkshire's own shares, a sharp acceleration from the $235 million spent in the first quarter.
Berkshire's cash pile fell to $365.5 billion at the end of June from a record $397.4 billion three months earlier, reflecting buybacks, the closing of the Taylor Morrison acquisition, and nearly $20 billion in net equity purchases that ended a 14-quarter streak of stock selling.
Buffett, now 95 and serving as chairman, had struggled to find value in equity markets and left Abel an unprecedented cash reserve, while shareholders have pressed the new CEO to put money to work beyond Treasuries; Berkshire shares are up about 3%.