Berkshire Hathaway's exceptionally deep pockets are getting shallower under its new CEO, Greg Abel.
In its latest earnings report on Saturday, the company said it ended June with $365.5 billion in cash and Treasury bills, a noticeable dip from the $397.4 billion recorded at the end of March.
The company's net income, meanwhile, reached $25.6 billion, more than double the $12.3 billion recorded the same time last year.
The company said the cash went toward repurchasing its own shares and buying stocks. The last time Berkshire Hathaway bought more stocks than it sold was in 2022. The Coca-Cola Company, American Express, Bank of America, Alphabet, and Apple are among its largest holdings.
The firm also completed its acquisition of Taylor Morrison Home Corporation on July 24, but did not provide a valuation in the report.
Berkshire Hathaway's decision to dip into its massive cash pile marks a new chapter for the firm, which had been hoarding cash in the years leading up to former CEO Warren Buffett's retirement last December.
Abel officially took the helm in January. In a February letter to shareholders, Abel said Berkshire Hathaway uses shareholders' capital on opportunities where the reward matches the risk.
"When we expand existing operations, acquire new operating businesses, invest in equity securities, and repurchase Berkshire stock, we evaluate each opportunity based on its potential to grow Berkshire's intrinsic value per share over a time horizon measured in perpetuity," he said.
Abel said Berkshire Hathaway is proud of its "nimble culture," which lets it consider and make thoughtful investments.
"Many times in Berkshire's history, some observers have suggested that our substantial cash position signals a retreat from investing. It does not. We continue to evaluate many opportunities and will remain patient and disciplined in pursuing the right ones for the benefit of our owners," Abel wrote.
Read next
Lauren Edmonds is an award-winning reporter on the Business News team. When news isn't breaking, she covers personal finance, kitchen-table economics, and paths to financial freedom, including investing, real estate, side hustles, and small business. She also writes about guaranteed and universal basic income programs in the United States.Lauren has also covered lifestyle and entertainment, digital culture, and more. She has a master's degree from the Columbia University Graduate School of Journalism and resides in New York City.Do you have an interesting story to tell? You can reach Lauren at [email protected] or on Signal at ledmonds0.07.Popular StoriesNetflix wants to be Disney when it grows up Why Hollywood is paying this 17-year-old up to $20,000 to boost film trailers with TikTok editsHere's all the free money Trump's talked about giving Americans during his second term — and where it all standsA 17-year-old earned $72,000 after investing his e-commerce profits into stocks. Here's why he bet on the tech industry.Lawmakers float a nationwide basic income experiment that would cover the cost of a 2-bedroom apartmentNearly 30,000 Americans have received about $335 million in basic income. Here are 5 takeaways. Americans ditch suffocating healthcare costs and divisive politics to retire in Italy: 'It's the way they approach life'From 'road-schooling' to gas that costs $500, this family of 4 shares what it's like living in a solar-powered Greyhound bus
