Berkshire Hathaway shifts gears under Greg Abel

Berkshire’s cash reserves dipped from a record $380 billion to $365 billion by June 30, driven by a net $20 billion investment in stocks and $4.6 billion in share buybacks. The company also pushed forward with acquisitions, including the $9.4 billion purchase of OxyChem and the $6.8 billion Taylor Morrison deal. This activity marks a notable shift after 14 consecutive quarters of net selling, leading some observers to question the motive behind the sudden spending.

Michael Burry, the investor famously depicted in "The Big Short," expressed concern that Abel might be deploying capital to signal stability to shareholders rather than waiting for the "fat pitch" Buffett historically required. While the spending is significant, it remains unclear if Abel is truly charting a new course or simply executing on a strategy still heavily influenced by the 95-year-old chairman. Much of the recent activity, including a $10 billion stake in Alphabet, bears the hallmarks of Buffett’s own recent decisions. Abel has publicly committed to disciplined capital allocation and continues to consult with his predecessor on major moves, leaving the long-term direction of the conglomerate an open question.