Berkshire Resumes Stock Purchases After 14 Quarters: What Changed

The End of a 14-Quarter Drought

Berkshire Hathaway did something in the second quarter of 2026 that it hadn't done since early 2023: it bought more stocks than it sold. The net balance was positive by nearly $20 billion, ending a streak of 14 consecutive quarters as a net seller of stocks. For those who follow Warren Buffett's moves as a market thermometer, this data is significant.

The turnaround was not timid. In addition to open market purchases, the conglomerate repurchased $4.5 billion in its own shares between April and June and over $3.3 billion in July. Share buybacks had resumed in March after a hiatus of nearly two years. Combined, this amount signals a significant change in posture from the management based in Omaha, Nebraska.

The movement gains context when observing what Berkshire has done in recent years. The conglomerate aggressively accumulated cash, reducing positions in companies like Apple and maintaining tens of billions of dollars in short-term U.S. Treasury securities. The implicit message was one of caution. Now, the message has changed.

A $10 Billion Bet on Alphabet

Among the purchases of the quarter, the most significant was the $10 billion reinforcement of its position in Alphabet, the parent company of Google and YouTube. The company was already in Berkshire's portfolio, but with the new investment, it consolidates as one of the conglomerate's largest equity holdings.

The choice is not random. Alphabet trades at historically low multiples compared to its big tech peers, while maintaining leadership in artificial intelligence with Google DeepMind and generating robust cash flow from advertising and cloud services. It is the type of combination that Buffett's philosophy traditionally seeks: intrinsic value exceeding market price.

Historically, when Berkshire makes concentrated bets of this size, the market pays attention. The purchase of the stake in Apple in 2016, which would become the largest position in the portfolio, followed the same logic: a technology company with a lasting competitive advantage and reasonable multiples.

Operating Profit Rises 16% and Revenue Exceeds $100 Billion

The numbers for the quarter justify the management's selective optimism. Operating profit rose 16% to $12.98 billion, above analysts' projections. The improvement came from diversified fronts: the BNSF railroad, the NetJets executive jet unit, and the TTI electronic components distributor compensated for the weaker performance of the auto insurer Geico.

Net income more than doubled, reaching $25.67 billion. However, this figure includes unrealized gains and losses on stocks that Berkshire still holds in its portfolio. The company itself recommends that investors ignore the volatility caused by this accounting, required by U.S. accounting standards since 2018.

Total revenue grew 10%, reaching $101.81 billion in the quarter. This level had stagnated in previous periods, and the resumption of growth indicates that the conglomerate's operational businesses, often overshadowed by the investment portfolio, continue to generate real value.

Caution Has Not Disappeared

If Berkshire has resumed buying, it does not mean it has abandoned its defensive posture. In its earnings announcement, the conglomerate stated that there is still "considerable uncertainty" regarding macroeconomic and geopolitical events, including trade tariffs and armed conflicts.

The more accurate reading is that management found specific opportunities that it considered attractive enough to justify a partial reduction of cash. The liquidity reserve remains high in absolute terms, even after the billions spent on purchases and buybacks. Berkshire still has more ammunition available than practically any other institutional investor on the planet.

For Brazilian investors, Berkshire's behavior serves as an indirect indicator. When Buffett positions himself as a net buyer, it signals that he sees value in the U.S. stock market, even while acknowledging risks. In recent cycles, these shifts in posture have preceded periods of positive returns, although correlation does not imply causation.

What Berkshire's Turnaround Signals for the Markets

Three elements deserve attention. First, the concentration in technology. The reinforced bet on Alphabet suggests that Berkshire, under the leadership of Greg Abel and the vice president of investments, sees big techs as value assets, not just growth assets. Second, the acceleration of buybacks indicates that management itself considers Berkshire's shares undervalued, a strong signal for the market.

Third, the fact that the company maintains caution in its discourse while acting decisively in its portfolio reveals a pragmatic approach. The global macro scenario remains uncertain, with trade tensions and real geopolitical risks. But uncertainty does not mean paralysis, especially for those with over $100 billion in cash to protect themselves if the situation deteriorates.

Berkshire Hathaway completed its leadership transition in 2025 with Buffett stepping down as CEO, keeping him as chairman of the board. The results for the second quarter of 2026 are, to some extent, the first major test of the new management in offensive mode. By the numbers, the test was successful.