Warren Buffett's Successor, Greg Abel, Just Ended Berkshire Hathaway's 14-Quarter Selling Streak. Is This the Screaming Buy Signal Investors Have Been Waiting For?

Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB) conscionable reported beardown second-quarter earnings, with operating income rising implicit 16% year-over-year.

Notably, the company's monolithic currency hoard declined from implicit $397 cardinal successful the archetypal 4th to $365.5 cardinal by the extremity of the 2nd quarter, arsenic CEO Greg Abel began putting currency to work.

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Even much absorbing is that Berkshire was a nett purchaser of stocks successful the 2nd quarter. According to quarterly reports filed with the Securities and Exchange Commission, the ample conglomerate purchased astir $23.5 cardinal successful stocks successful the 2nd 4th and sold lone astir $3.7 billion.

In the 14 quarters prior, Berkshire had been a nett seller of stocks. Is this the screaming bargain awesome that investors person been waiting for?

Image source: The Motley Fool.

What did Berkshire bargain successful the 2nd quarter?

We won't cognize precisely which stocks Berkshire bought and sold successful the 2nd 4th until the institution files its 13F form, which volition apt hap aft the marketplace closes connected Aug. 14.

However, we bash cognize that connected June 1, Berkshire announced it had purchased $10 cardinal of Alphabet Class A and Class C shares successful a backstage placement.

Alphabet is present a apical 5 presumption successful Berkshire's astir $355 cardinal equities portfolio and represents 1 of the clearest bets connected artificial quality that Berkshire has made.

Berkshire besides announced the acquisition of Taylor Morrison Homes successful the 2nd 4th for $6.8 billion.

However, being an acquisition, it wouldn't beryllium included successful the "purchase of equity securities" enactment connected Berkshire's currency travel statement. The woody besides didn't adjacent until aft the 4th ended, truthful much fiscal details won't beryllium made nationalist until third-quarter net materials are reported.

Berkshire besides repurchased astir $4.5 cardinal of its ain banal successful the quarter. That's significant, considering Berkshire repurchased nary banal successful 2025 and lone astir $2.9 cardinal successful 2024.

Is this a screaming bargain signal?

While nett banal buying and the restart of stock repurchases surely look constructive, I don't deliberation investors should get excessively excited conscionable yet.

Warren Buffett led Berkshire Hathaway for six decades, generated unthinkable returns, and is viewed arsenic the top capitalist of each time.