Berkshire speeds up stock buybacks

Greg Abel, CEO of Berkshire Hathaway (BRK.A, BRK.B), has invested $14.4B in the company's stock this year, including $9.6B in Q3. Berkshire's stock portfolio and cash reserves are substantial, with a market cap of $1.26T. Abel has also invested in Alphabet and restarted share buybacks, authorizing $14.4B in repurchases. The company has over $352B in cash, allowing for further investments or buybacks.

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 repurchased $9.6 billion of its own stock in Q3, but profits fell 28% due to investment value changes and Geico's declining underwriting profit. Geico's underwriting profit dropped to $982 million from $1.77 billion a year ago. Berkshire's cash reserves grew to $377.4 billion. Operating earnings declined 6% to $12.7 billion, missing analyst estimates.

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.