Berkshire Hathaway Hits Record Highs as Abel’s Tech Pivot Outperforms AI Sell-Off

Key points

• BRK.A closed at $798,000 and BRK.B at $532.02, just 1.4% below their all-time closing highs, marking a recovery from a 14% post-Buffett-announcement dip.
• Berkshire invested an additional $330 million in Bending Spoons via a private placement at $33 per share, bringing its total stake to approximately $930 million and a 4% ownership position.
• The company repurchased $4.5 billion of its own stock in Q2 2026 and holds roughly $360 billion in cash, generating higher yields due to elevated short-term interest rates.
• Coca-Cola, a $37.6 billion holding, hit an all-time high, overtaking Alphabet as Berkshire’s third-largest equity stake, aided by KFC’s switch from Pepsi to Coke.
• Berkshire’s energy subsidiaries and $19 billion Chevron stake benefited from rising oil prices, with Chevron gaining 36% since July.

Background

Following Buffett’s May 2025 announcement of his retirement, Berkshire shares lost over 14% of their value as investors worried about the dissipation of the 'Buffett premium.' The stock bottomed in August 2025 before beginning a recovery. Recent market volatility has seen AI and chip stocks face dot-com-era valuation concerns, prompting a rotation toward 'old economy' names. Berkshire’s recent moves, including the Bending Spoons investment, signal a departure from traditional value investing under Abel’s leadership.

How outlets are covering it

CNBC emphasizes the strategic shift under Abel, highlighting the Bending Spoons bet as a move out of Berkshire’s 'comfort zone' and noting that higher interest rates are boosting returns on its cash pile. Seeking Alpha frames the stock’s record high as a 'vote of confidence' in Abel’s leadership, contrasting it with the broader tech sell-off. Yahoo Finance notes the broader market context, where Berkshire outperformed chip stocks during a period of dot-com-era valuation signals, suggesting investors are rotating away from high-flying AI names toward more stable, cash-rich holdings.

Why it matters

Berkshire’s performance serves as a barometer for market sentiment, particularly as investors navigate potential AI bubble risks. Abel’s willingness to invest in high-multiple tech companies like Bending Spoons, alongside traditional value plays, indicates a flexible strategy that may sustain outperformance even as tech valuations correct. The company’s massive cash pile and buyback activity provide a buffer against market volatility, reinforcing its status as a defensive yet active investor in a shifting landscape.

What to watch

Investors will watch Berkshire’s Q3 13F filing, due next month, for details on its Bending Spoons stake and other portfolio adjustments. The company’s cash position and buyback pace will be key indicators of Abel’s capital allocation strategy. Additionally, the performance of Bending Spoons and other tech holdings will test the durability of Berkshire’s new investment approach amid ongoing market volatility.