Key highlights:
- Berkshire Hathaway shares are nearing record highs as Greg Abel deploys more of the company’s massive cash reserves
- Class A shares moved within reach of their all-time high after Berkshire posted a 16% rise in quarterly earnings
- The US stock market is recording a strong surge, with the S&P 500 climbing to a new all-time high
Berkshire Hathaway shares are approaching their all-time high after the conglomerate reported stronger-than-expected Q2 results and began putting more of its enormous cash pile to work under CEO Greg Abel. The gains suggest investors are increasingly comfortable with Berkshire’s transition from Buffett to Abel, while massive cash reserves leave the new CEO with enough firepower for further investments and share repurchases
Investors warm to Abel’s capital strategy as Berkshire Hathaway stock soars
Class A shares (BRK-A) rose 2.6% to $800,495, below their record closing price of $809,350 set in May 2025. On the other hand, Class B shares (BRK-B) climbed 2.3% to $533.89, driven by strong financials and a more active capital-allocation strategy.
The latest rally has pushed both share classes close to their previous records. Class A remains the clearest measure of the company’s approach to its all-time high, while Class B also reached a 52-week high during Monday’s session.
Berkshire reported $13 in second-quarter operating earnings, a 16% spike from a year earlier. The railroad, energy, manufacturing, service and retail businesses helped drive the gains, offsetting weaker performance from the insurance operation.
The results gave investors further confidence in Abel, who took over as Berkshire’s CEO at the start of 2026 following Warren Buffett’s departure from the role. The market has been watching whether Abel would maintain Buffett’s famously conservative approach to capital allocation or become willing to deploy Berkshire’s enormous cash reserves.
Berkshire became a net buyer of stocks during Q2 after 14 consecutive quarters of net selling. The company invested about $19.8 billion more in equities than it sold, including a roughly $10 billion increase in its Alphabet position.
The conglomerate also repurchased $4.5 billion of its own shares during the quarter, including about $350 million of Class A stock and $4.18 billion of Class B shares. Berkshire Hathaway followed that with another $3.4 billion in buybacks during July, signaling management’s willingness to return capital to shareholders when it sees value in the stock.
US stocks hover near records as S&P 500 rally powers Wall Street
US stocks are hovering near record highs after a powerful rally pushed the S&P 500 to new closing record last week. Similar to Berkshire Hathaway, the latest advance is backed by strong corporate earnings, particularly among companies with heavy spending on artificial intelligence.
The rally has also broadened beyond the biggest technology companies. Industrials, energy stocks and other parts of the market have participated in the advance, helping lift the major indexes even as investors remain alert to elevated valuations.
Meanwhile, the market’s record run has faced fresh pressure from rising oil prices and geopolitical uncertainty. Brent crude jumped about 5% on Monday as uncertainty surrounding the Strait of Hormuz raised concerns about energy costs and inflation.
Source:: Berkshire Hathaway Stock Nears All-Time High as Greg Abel Puts Warren Buffett’s Cash to Work