Berkshire Hathaway Continues Strong with Recent Developments

Berkshire Hathaway reported Q1 2026 operating earnings of $11.35 billion, up 18% year-over-year, as Greg Abel completed his first full quarter as CEO following Warren Buffett's January 2026 transition to Executive Chairman — the first CEO change since Buffett took control in 1965. The company's cash pile swelled to a record $397.4 billion, up from $373 billion at year-end 2025, as Abel continued Buffett's patient capital allocation discipline.

The earnings milestone was broad-based, with net income doubling to $10.1 billion from $4.6 billion in Q1 2025. Insurance underwriting earnings jumped 28% to $1.72 billion, though Geico reported a 34% earnings decline. Abel has also begun reshaping the portfolio, unwinding approximately $15 billion in positions tied to departing investment manager Todd Combs while initiating new stakes including the New York Times (~5 million shares) and adding to Domino's Pizza. Berkshire also resumed share buybacks for the first time since May 2024, repurchasing $234 million in Q1.

Buffett's public endorsement of Abel — stating he would "rather have Greg handling my money than any of the top investment advisors" — has reassured investors about the succession . The 'core four' equity holdings — AAPL, AXP, Moody's, and KO — remain intact, and with a record cash reserve, the focus now turns to how Abel deploys capital as market dislocations emerge in 2026.

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