BerkshireHathaway accelerates buybacks, lowers cash stake as profit tops forecasts

Berkshire Hathaway said it began reducing its enormous stockpile of cash in the second quarter, investing billions of dollars in stocks such as Alphabet and repurchasing billions of its own, as it reported higher-than-expected profit.The conglomerate said on Saturday it repurchased $4.5 billion of its own stock between April and June and over $3.3 billion more in July, accelerating repurchases it began in March following a nearly two-year hiatus.Berkshire also bought nearly $20 billion more stocks than it sold, ending 14 straight quarters as a net seller of shares.Purchases included a $10 billion addition to an already-large investment in Alphabet, the parent of Google and YouTube, which is now one of its largest stock holdings.Quarterly operating profit rose 16% to $12.98 billion, topping analyst forecasts, as improvement at the BNSF railroad and service businesses including the NetJets luxury plane unit and TTI electronic components distributor helped offset weakness at the Geico auto insurer.Net income more than doubled to $25.67 billion, including unrealized gains and losses on stocks that Omaha, Nebraska-based Berkshire still owns. Berkshire urges investors to ignore the resulting volatility.Revenue, which had been stagnating, rose 10% to $101.81 billion.Berkshire said “considerable uncertainty” remains about macroeconomic and geopolitical events, including tariffs and wars.It also said falling demand at consumer businesses, including its 103 car and truck dealerships, Fruit of the Loom underwear, and Forest River RVs, reflects changes in consumer confidence.The quarter was the second since Greg Abel became Berkshire’s chief executive, succeeding Warren Buffett, who remains chairman.“It’s a pretty healthy beat, and investors will be encouraged,” said Cathy Seifert, an analyst at CFRA Research with a “neutral” rating for Berkshire.“Slowly, gradually and subtly we’re seeing Greg assert himself as the new leader.”Investors an...