Greg Abel, CEO of Berkshire Hathaway, deployed $23.5 billion across nine publicly traded companies in the second quarter, marking the firm's first period as a net stock purchaser since 2022. The conglomerate sold just $3.7 billion in equities during the period, according to its earnings report.
Alphabet was by far Abel's largest bet. Berkshire committed $10 billion in a June private placement and acquired an additional $5 billion to $7 billion of Alphabet stock throughout the quarter, bringing total deployment to between $15 billion and $17 billion. Alphabet is now Berkshire's third-largest marketable equity holding. Buffett initiated the original position in the third quarter of last year with a smaller purchase.
Abel assumed the CEO role at the start of the year. Buffett continues as chairman and remains deeply involved in capital allocation. "I am not doing anything that he doesn't approve of. He's not doing anything I don't approve of," Buffett said. "We talk all the time, but he is the decider."
Berkshire's Form 13-F filing revealed purchases in homebuilders Lennar and D.R. Horton, along with the earlier acquisition of homebuilder Taylor Morrison. The move signals confidence that builders remain underpriced despite headwinds from rising mortgage rates and home prices. The U.S. housing market faces a structural shortage that should benefit the sector over the long term.
Abel also deployed capital into three Japanese trading houses, viewing them as 50-year holds or potentially permanent positions. He sees opportunities for strategic alliances that could unlock new capital allocation paths. Japanese valuations trade at significant discounts to U.S. equities, and low interest rates on yen-denominated debt provide a hedge mechanism.
Abel oversees Berkshire's extensive portfolio and its dozens of operating subsidiaries. While his investment and capital allocation track record is short, he benefits from Buffett's ongoing guidance.
