Prediction: Berkshire Hathaway's 2026 Buybacks Will Top $10 Billion
Key Points
After no buybacks in 2025, Berkshire Hathaway put its stock repurchase plans back in action in 2026.
It’s on pace to buy back more than $10 billion worth of its own shares this year.
The fact that Berkshire sees enough value to buy its own stock again is a hint that all interested investors might want to consider.
After a year-long hiatus, Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) is finally buying back its own stock again, making the shares that remain in circulation all the more valuable. Specifically, after repurchasing none in all of 2025 and only $234 million worth in Q1 of this year, during the second quarter of 2026, Berkshire bought back $4.53 billion of its own stock -- mostly B shares -- bringing its first-half total to $4.76 billion.
Given the trend (along with other information that's been disclosed in the meantime), the conglomerate's total repurchases could exceed $10 billion this year.
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Buybacks are back
It's not unheard of. Indeed, Berkshire Hathaway regularly repurchases at least some of its own shares. It just didn't do so last year largely because management didn't see enough value following 2024's sizable gains.
See, per a 2025 amendment to its stock-buyback program, the company only repurchases its own shares when the CEO and chairman of the Board of Directors agree that "the repurchase price is below Berkshire's intrinsic value, conservatively determined."
Even then, buybacks aren't a requirement. CEO Greg Abel, the Board of Directors, and current chairman of the board Howard Buffett could still agree that it makes more sense to keep ample cash on hand in case other investment opportunities arise.
The fact that the company was still sitting on $365.5 billion worth of cash at the end of Q2 suggests they still don't see many such opportunities, bolstering the argument that Berkshire Hathaway will soon use some of this enormous war chest to add at least some shareholder value in the one way it knows will work on a dollar-for-dollar basis.
Then there's the other thing.
While it's only unofficial for the time being -- in that it hasn't been disclosed in an official filing -- when it reported its Q2 numbers in August, the company added that it repurchased another $3.3 billion in Berkshire shares in July, after the end of the quarterly reporting period. That brings the year-to-date total to just over $8 billion, less than $2 billion shy of the prediction of at least $10 billion.
Given that the company still had five more months left in the year to continue buying back its own shares, in fact, that $10 billion target somehow seems conservative, particularly given that the stock's now fallen back to July's price.
One of the best of a limited number of opportunities right now
Berkshire's investors would probably rather the conglomerate invest its cash for growth rather than use it to fund buybacks. While both add value, ownership of a for-profit business usually generates perpetual growth and/or income.
Stock buybacks add comparable long-term value, though, even if in a less evident indirect way. That's especially true when there are no other compelling investment options to dive into and a company's enormous cash hoard is simply sitting idle, as has been the case here since late 2024 (when Berkshire's stock buybacks also stopped).
Whatever the case, we'll have a clearer picture on the matter sometime in early November, when Berkshire Hathaway releases its third-quarter update.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.