Nov 15, 2026
In Q3 2026, Berkshire Hathaway bought back US$9.6 billion of its own stock — a sign its new CEO Greg Abel is putting the company’s massive cash reserves to work more aggressively than Warren Buffett did toward the end of his tenure.
According to Reuters, the Omaha-based conglomerate reported the buybacks in its November 7 financial results. It had already distributed US$4.8 billion toward stock buybacks earlier in the year, followed by an additional $2 billion in the first four weeks of October.
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The spending coincided with a drop in Berkshire’s insurance profits, making shareholders ask: Is Abel’s active strategy a wise move, or a risky departure from the company’s traditional playbook?
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Where is Berkshire’s money going?
Berkshire directed US$9.6 billion to buying back its shares in the first quarter. For investors, these buybacks mean each remaining share owns a larger slice of the business, and there are fewer shares to go around.
Abel has been active elsewhere this year, too. In July, Berkshire spent US$6.8 billion to purchase home builder Taylor Morrison. It also poured billions into Alphabet stock and took a 4% stake in Italian software developer Bending Spoons.
Despite this major expenditure, Berkshire still has massive cash reserves. Reuters reported the company’s cash equivalent at US$356.9 billion at the end of September, while the Associated Press (AP) estimated it at roughly US$377.4 billion. Regardless, Berkshire Hathaway still has plenty of room to continue spending.
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How is Abel’s approach different from Buffett’s?
Warren Buffett never opposed share buybacks. Berkshire bought back its own stock for 24 consecutive quarters until mid-2024, highlighting a record US$27 billion in repurchases in 2021.
But in Buffett’s final years as CEO, he struggled to find reasonably priced companies or stocks. Instead, he chose to sell Berkshire’s largest equity holdings to allow the company’s cash reserves to grow.
Abel stepped in as CEO starting in early 2026 and resumed share buybacks in March after a hiatus of nearly two years, saying he consulted Buffett before making the decision. Abel also invested roughly US$15 million of his own salary into Berkshire shares.
But the rules remain unchanged — Berkshire still restricts buying back stock when the CEO determines the company’s shares are trading below its value, following a discussion with the chairman. For Abel, valuation is still his main concern. A recent AP report indicated buybacks likely stopped after Berkshire’s Class A shares climbed past US$878,000.
What could this mean for shareholders?
Buybacks can offer great news for long-term investors. Because buybacks reduce the overall share count, every remaining share owns a larger portion of Berkshire, and big repurchases signal to investors the company’s stock is a good deal. And investors agree: Berkshire shares shot up over 13% in 2026 through to November 6, hitting record highs that outpaced the S&P 500 by more than five percentage points.
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However, several challenges emerged despite the strong stock performance:
- Profits dipped. Operating profit — the metric Berkshire advises investors to track — fell 6% to US$12.71 billion.
- Insurance struggled. Underwriting profit dropped 43%, weighed down by q 45% drop in pretax profit at Geico as the insurer boosted ad spending and lowered premiums to win back customers.
- Other businesses improved. Burlington Northern Santa Fe (BNSF) railroad profits climbed 19% while Precision Castparts’ pretax profit jumped 30%.
Research analyst Cathy Seifert with the Center for Financial Research and Analysis (CFRA), stated that the businesses Abel knows best are delivering solid results. However, Siefert noted with the APthat “the question is what about the rest of the franchise.”
Keith Richards, president and chief portfolio manager at ValueTrend Wealth Management, named Berkshire a top pick on BNN Bloomberg in June. We reached out to him for comment, and had not received a response as of publication.
Dividend payouts remain off the table at Berkshire. Abel maintains that stock buybacks and strategic business reinvestment are the primary ways to return value to its shareholders.
What actionable steps can investors take?
- Read buybacks a signal, not a promise. Share repurchases signal that Abel views the stock as undervalued, but they won’t fix weaknesses in businesses like Geico.
- Follow the cash. Watch Berkshire’s quarterly financial statements for how Abel manages remaining cash reserves, whether it’s more buybacks, adding stocks, or new corporate acquisitions.
- Pick the right share class. Investors can avoid the high cost of Class A shares by focusing on lower-cost Class B shares, offering an easier and more accessible entry point.
- Mind the currency exchange. Berkshire trades in USD. As always, conversion fees and exchange-rate swings affect your returns in CAD.
- Use your registered accounts. Holding Berkshire in a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) is tax-efficient — since the company doesn’t pay dividends, U.S. withholding tax isn’t an issue.
- Check what you already own. If you’re an index investor, you may already hold some funds or ETFs with Berkshire, as it has one of the heaviest weightings in the S&P 500.
Greg Abel’s recent buying spree and deal-making suggests a more dynamic era for Berkshire. Long-term returns will depend on where he spends next, and at what price.
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Melanie is an editor and fact checker who is passionate about proofreading and editing personal finance content. She specializes in breaking down complex topics into easily digestible details to help people make wise financial decisions.
