Warren Buffett Thinks Stocks Are Expensive. Berkshire Hathaway CEO Greg Abel Seems To Disagree
Berkshire Hathaway (BRK.A, BRK.B) shifted to net stock buying in Q2 2026, contrasting Warren Buffett's cash-hoarding stance. Under Greg Abel, it bought Alphabet ($17B), Delta ($1.64B), Lennar ($273M), and Macy's ($101M), while selling Bank of America ($1.7B) and others. Buffett still views the market as overvalued, per a May CNBC interview.
How this was made
The 30-second read
Why it matters
Berkshire's new buying pattern signals a possible shift in investment philosophy, affecting both value and growth sectors.
Market read
First report of Berkshire's Q2 buying and selling activity; provides fresh data for portfolio managers.
What to watch
Cash balance remains high; future buying power may still be limited.
Background
The article reviews Berkshire Hathaway's Q2 2026 portfolio changes under new CEO Greg Abel, contrasting with Warren Buffett's prior stance.
Ticker impact
Berkshire added $17 billion of Alphabet shares in Q2, its first major purchase of the tech giant.
Slight upward pressure on GOOGL.
High‑profile buyer signals confidence in growth prospects.
Berkshire bought $1.64 billion of Delta Air Lines shares in Q2.
Modest upside for DAL.
Purchase size is notable but limited relative to market float.
Berkshire purchased $273 million of Lennar shares in Q2.
Small upside for LEN.
Purchase is modest in scale.
Berkshire reduced its Bank of America holding by $1.7 billion in Q2.
Minor downside for BAC.
Sell size is notable but not market‑moving.
Berkshire sold $830 million of Capital One Financial shares in Q2.
Slight downside for COF.
Sell amount is moderate.
Berkshire retained a $610 million position in Kroger after Q2 sales.
No significant change for KR.
Holding size unchanged.
Berkshire kept a $456 million stake in Nucor after Q2 sales.
No material impact for NUE.
Stake size stable.
Berkshire retained a $272 million position in DaVita after Q2 sales.
No material effect for DVA.
Holding unchanged.
Market effects
Value‑style investors may reassess exposure to cyclical and tech stocks.
U.S. equity markets could see modest sector rotation.
Large institutional moves may influence global sentiment toward large‑cap equities.
Counterpoint
Berkshire's shift could be a temporary tactical move rather than a strategic change.
Key entities
- CompanyBerkshire Hathaway
Conglomerate making notable portfolio adjustments.
- ExecutiveGreg Abel
CEO of Berkshire Hathaway, driving new investment approach.
