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Warren Buffett warned about stock valuations but Berkshire Hathaway is aggressively purchasing stocks
Economic Times 1 hr ago·20 Oct 2026, 4:00 am
Warren Buffett, the legendary investor, recently cautioned that stock valuations have reached historically high levels. However, his company, Berkshire Hathaway, is actively increasing its equity holdings. This apparent contradiction highlights a shift in strategy under the leadership of CEO Greg Abel, who took over from Buffett. The conglomerate has significantly boosted its stakes in major companies, including a more than threefold increase in Alphabet and a substantial purchase of Delta Air Lines shares.
For investors, this move signals that Berkshire Hathaway remains confident in the long-term prospects of these businesses despite current market valuations. It suggests that the firm sees significant value in established companies like Apple, Alphabet, and Delta. This activity often serves as a vote of confidence for the broader market, as Berkshire is known for its disciplined, long-term approach to investing.
Investors should watch for future quarterly filings to see if Berkshire continues to increase its positions. It is also important to note that while the company is buying, this does not necessarily mean retail investors should follow suit. The company's unique financial position allows it to take risks that individual investors cannot, so it is best to focus on your own investment strategy.
Excerpt from Economic Times
While Buffett criticised the current market scenario, his firm Berkshire Hathaway has been pumping up its investments. The company under CEO Greg Abel has been increasing its stake in Google-parent Alphabet, making it one of Berkshire's five largest common stock holdings, led by iPhone maker Apple. Berkshire more than…Read the original at Economic Times
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