Berkshire Hathaway Hasn’t Done This in Over 3 Years

August 17, 2026

AI Summary

5 min read

Berkshire Hathaway ended a streak that had lasted more than three years and 14 consecutive quarters: for the first time since early 2022, the company was a net buyer of stocks in the second quarter, adding roughly $20 billion to its portfolio. The shift comes under new CEO Greg Abel, and it signals a meaningful change in how the firm is allocating capital — away from defensive retail and financial holdings and toward concentrated bets on technology, housing, and AI infrastructure.

The End of Berkshire's Net-Selling Streak

From the first quarter of 2022 through the first quarter of 2025, Berkshire Hathaway was a net seller of equities. Over that same period, the S&P 500 rose 63%. The reversal in Q2 was decisive: Berkshire bought about $24 billion in stocks and sold about $4 billion, for a net addition of $20 billion. It also repurchased $4.5 billion of its own stock and closed on the $8.5 billion acquisition of homebuilder Taylor Morrison. Roughly $10 billion of the buying came from a previously announced private placement in Alphabet, which boosted Berkshire's stake by about 83% and vaulted Alphabet into the portfolio's top three holdings alongside Apple and American Express.

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What you'll learn

1 (00:01) **Berkshire Hathaway's Historic Shift** - After 14 consecutive quarters of net selling, Berkshire became a net buyer of stocks for the first time in over three years.
2 (04:58) **Berkshire's Sales and Portfolio Trims** - Berkshire trimmed several positions, with Bank of America being the largest sell by dollar volume for the fifth consecutive quarter.
3 (07:38) **Berkshire's Concentration vs. Diversification** - The panel debates whether Berkshire's concentrated stock portfolio (77% in just five positions) means it isn't diversified.
4 (12:45) **Listener Mailbag: Finding Stocks Before They Skyrocket** - A listener found Rocket Lab (RKLB) from the show when it was in single digits and asks how to screen for momentum stocks before they take off.
5 (15:02) **Matt's Approach to Identifying Early-Stage Winners** - Matt uses Rocket Lab as a case study for the qualitative triggers he screens for.
6 (17:16) **The Human Element vs. AI in Investing** - Rachel explains why AI cannot replace human judgment in stock selection.
7 (20:07) **Managing the Volatility of Home Run Stocks** - Rocket Lab has dropped 40% or more six times in three years, including a 47% drawdown since May.

+ Full timestamped outline available in the app

Guests on this episode

Rachel Warren Matt Frankel

Show Notes

Berkshire Hathaway is a net buyer of stocks again for the first time in nearly 4 years, but new CEO Greg Abel still had some surprising stocks to sell during the quarter. Jon, Matt, and Rachel break down Berkshire’s latest moves before answering a listener question regarding how to spot a winning stock early before finishing the episode by running some Berkshire stocks through some Hidden Gems mental frameworks.

Jon Quast, Matt Frankel, and Rachel Warren discuss:

-Berkshire buys stocks again
-Greg Abel’s changing approach
-Hidden Gems Investing’s favorite AI scoring categories
-Why housing stocks could be Hidden Gems
-Why the AI industry is still a great place to look for Hidden Gems

Companies discussed: Berkshire Hathaway (BRK.A)(BRK.B), Alphabet (GOOG)(GOOGL), D.R. Horton (DHI), Kroger (KR), Delta (DAL), Rocket Lab (RKLB), Dream Finders Homes (DFH), Forgent Power Solutions (FPS)

Host: Jon Quast
Guests: Matt Frankel, Rachel Warren
Engineer: Kristi Waterworth

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