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) just reported strong second-quarter earnings, with operating income rising over 16% year-over-year. Notably, the company’s massive cash hoard declined from over $397 billion in the first quarter to $365.5 billion by the end of the second quarter, as CEO Greg Abel began putting cash to work. Even more interesting is that Berkshire was a net buyer of stocks in the second quarter.
According to quarterly reports filed with the Securities and Exchange Commission, the large conglomerate purchased nearly $23.5 billion in stocks in the second quarter and sold only about $3.7 billion. In the 14 quarters prior, Berkshire had been a net seller of stocks. Is this the screaming buy signal that investors have been waiting for?