Berkshire's Cash Pile Fell From $400 Billion to $365.5 Billion as Greg Abel Became a Net Buyer for the First Time in 3 Years. What Does That Signal for Investors?
During the second quarter, Berkshire became a net buyer of stocks for the first time in over three years.
Overview
After 14 consecutive quarters as a net seller of equities, Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) cash reserves dropped from nearly $400 billion at the end of the first quarter to roughly $365 billion by June 30, marking a clear strategic pivot under new CEO Greg Abel.
During the second quarter, the investment conglomerate purchased about $23.5 billion in stocks while selling only $3.7 billion -- producing net buying activity of nearly $20 billion. These moves, combined with Berkshire's recent share repurchases and selective acquisitions, signal that the company's leadership finally sees some attractive opportunities after years of patience and cash accumulation.
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Originally published at www.fool.com.