Forget the AI Friday Rally: Why Big Money Is Still Fleeing to Warren Buffett’s Berkshire Hathaway

Berkshire Hathaway acquired $596 million in Lennar shares from September 17 to October 2, 2026, increasing its stake to 12%. Lennar reported a 8.52% revenue decline in Q3, with adjusted EPS missing estimates. CEO Stuart Miller noted challenges in the housing market, including high mortgage rates and competition. Analysts are largely bearish, with Morgan Stanley setting a $65 price target. Lennar shares are down 26% YTD.

Berkshire Hathaway's Greg Abel oversaw $9.6 billion in share buybacks in Q3 2026, more than doubling the previous quarter's $4.53 billion. Since mid-2018, Buffett and Abel have spent approximately $92 billion on buybacks. The company had $377.4 billion in cash and equivalents at the end of September 2026. Buybacks are a key strategy for Berkshire, which does not pay a dividend.

Berkshire Hathaway spent $9.6B on share repurchases in Q3 2026, more than double Q2's $4.5B. The company buys back shares only when it believes the price is below its intrinsic value. In Q3, it bought Class B shares at $496.24 to $506.64 and Class A shares at $758,332.88. Berkshire had $352.3B in cash and equivalents at Q3's end, according to its SEC filing.

Berkshire Hathaway spent a record $9.6 billion on stock buybacks in Q3 2026, exceeding its previous high of $9.3 billion in Q3 2020. The company repurchases shares only when it believes they are trading below intrinsic value. Class B shares now trade near $570, about 12% above Berkshire's average repurchase price in September. Berkshire's buyback policy requires ample cash reserves and a stock price discount to intrinsic value.

Berkshire Hathaway's Class B shares fell 1.01% to $565.14 on Monday, despite a $9.6 billion buyback and Q3 operating earnings of $12.7 billion, down 5.8% YoY. Insurance underwriting profit and investment income also declined. GuruFocus rates the stock as potentially overvalued, with a GF Value Rank of 6/10.

Berkshire Hathaway's Q3 2026 earnings showed revenue up 11% to $105.65B, but operating earnings fell 5.8% to $12.71B. While industrial sectors like BNSF railroad and energy saw gains, insurance and consumer businesses struggled, reflecting a disconnect between economic growth and consumer spending. The company holds $377.4B in cash and equivalents, with CEO Greg Abel focusing on disciplined capital allocation.