Berkshire Hathaway buybacks hit record $9.6B as Greg Abel shifts capital strategy

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Berkshire buybacks hit a record $9.6B

Berkshire Hathaway accelerates buybacks under Greg Abel

According to the Financial Times, Berkshire Hathaway spent a record $9.6 billion on share repurchases in the third quarter of 2026. That was almost double the $4.8 billion deployed during the first half of the year and brought total buybacks for the first nine months to $14.4 billion.

The program continued after the quarter ended. Berkshire repurchased roughly another $2 billion of stock in October, lifting the year-to-date total to $16.4 billion.

The faster pace of buybacks has become one of Greg Abel’s most notable capital-allocation decisions since taking over as CEO in January. In recent years, Warren Buffett had preferred to maintain a substantial cash reserve as attractive investment opportunities became harder to find. The new leadership appears more willing to deploy excess capital into Berkshire’s own stock.

Insurance weakness pushes operating profit down 5.8%

Despite the aggressive buyback activity, Berkshire Hathaway’s third-quarter operating profit fell 5.8% year over year to $12.7 billion, down from $13.49 billion a year earlier. Net income declined by roughly 28% to $22.11 billion.

Insurance was the main source of pressure. According to Berkshire Hathaway’s official filing, insurance underwriting profit dropped 43% to $1.35 billion. Geico, in particular, reported weaker earnings as insurance premiums declined and claims-related costs increased.

Other businesses performed better. Profit at railroad operator BNSF rose 19%, while Berkshire Hathaway Energy posted an 8% increase. Those gains partly offset weakness in insurance and highlighted the benefits of the conglomerate’s diversified structure.

Berkshire Hathaway gains investor interest amid AI stock sell-off

The acceleration in buybacks has coincided with stronger investor interest in Berkshire Hathaway during a broad sell-off in technology stocks.

As Traders Union reported previously, Berkshire stock gained more than 5% over the past week, while the S&P 500 fell nearly 2.7% and the Nasdaq lost 3.4%. Investors have been shifting capital toward companies that are less dependent on heavy spending on AI infrastructure.

Record buybacks and Berkshire’s diversified business mix continue to support its investment appeal despite the decline in operating profit. Still, the stock’s next move will also depend on whether the company can restore profitability in its insurance operations, which remain one of its most important sources of earnings.

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