Abel Reverses Buffett's Two Biggest Convictions in Six Months

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Summary · why it matters

Greg Abel, who succeeded Warren Buffett as Berkshire Hathaway's chief executive on January 1, 2026, has reversed Buffett's two biggest convictions within six months, turning the company into a net buyer of equities and ramping up buybacks. In the second quarter, Berkshire made nearly $20 billion in net equity purchases, including a $10 billion private placement in Alphabet, and spent $4.5 billion on buybacks, reducing cash reserves by $32 billion to $365.5 billion by June 30, 2026. Buffett told CNBC in a July 2026 interview that he personally drove the decision to build the Alphabet position, saying, "I initiated it. I am not doing anything that he doesn't approve of. He's not doing anything I don't approve of. We talk all the time, but he is the decider." Abel also announced a $6.8 billion acquisition of homebuilder Taylor Morrison at $72.50 per share, a 24% premium, and personally purchased 21 Class A shares at approximately $730,000 each, committing to repeat the purchase annually. Operating earnings rose 16% year over year to $12.98 billion, while net income more than doubled to $25.67 billion, and shares climbed as much as 3.3% following the results. Critics like Michael Burry expressed concern about the pace of spending, but others, including Bill Stone of The Glenview Trust Company, defended Abel's actions as disciplined capital deployment.

Impact on stocks 6

Artificial Intelligence▲ · 2 stocks
Alphabet Inc Class C
GOOG
▲ PositiveCapitalrelevance

Berkshire made a $10 billion private placement in Alphabet, a major equity investment in the company.

Energy Transition & Power Demand▲ · 1 stocks
Berkshire Hathaway Inc
BRK-B
▲ PositiveCapitalrelevance

Berkshire became a net equity buyer, ramped buybacks to $4.5B, and posted operating earnings up 16% and net income more than doubling under Abel.

Consumer Discretionary▲ · 1 stocks
Taylor Morn Home
TMHC
▲ PositiveCapitalrelevance

Berkshire announced a $6.8 billion acquisition of Taylor Morrison at $72.50 per share, a 24% premium.

Digital Finance & Tokenization▲ · 1 stocks
Financials▲ · 1 stocks

Off-coverage companies 1

Glenview Trust CompanyPrivate± Mixed
relevance

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