How to invest like the (new) Buffett

It was never going to be easy to fill the shoes of the Oracle of Omaha. All eyes were firmly on new Berkshire Hathaway CEO, Greg Abel, from the moment Warren Buffett retired at the start of the year.

On Saturday, he announced the second quarter report for Berkshire Hathaway and there’s plenty to unpack. 

Spectators might wonder if a new CEO is making his mark and doing things differently. However, it’s worth remembering that Abel has worked closely with Buffett for around 26 years, and Buffett remains Chairman of Berkshire Hathaway. Whether or not they are aligned on all decisions, the deeper philosophy would remain the same.

So, what does Greg Abel’s Berkshire Hathaway look like at this early stage of management, and how can Australians replicate the approach?

Key takeaways from Berkshire Hathaway’s 2026 second quarter report

• Higher than expected earnings with net income more than doubling to $25.67bn.
  
• Berkshire Hathway is spending cash. It has repurchased US$7.8bn of its own stocks between April and July. This is the first time it has done buybacks since 2024.
  
• It has heavy topped up stocks, including a US$10bn top up to Alphabet (NASDAQ: GOOGL) – one of its largest holdings. The value of its equity holdings is now US$26bn higher than in December 2025. In the last few years, it has been a net seller of equities, rather than buyer.
  
• It has continued to acquire Treasuries to the value of US$4.5bn in the second quarter.
  
• It acquired community developer and homebuilding company Taylor Morrison in July which will integrate with Berkshire Hathaway’s Clayton Properties Group.
  
• It continues to maintain a relatively concentrated equity portfolio. The largest five stocks represent 66% of the equity portfolio and include Alphabet, American Express (NYSE: AXP), Apple (NASDAQ: AAPL), Bank America Corporation (NYSE: BAC) and the Coca-Cola Company (NYSE: COKE). It also owns stock in the Kraft Heinz Company (NASDAQ: KHC) and Occidental (NYSE: OXY). (It purchased the Occidental chemicals business in January after an agreement set in October 2025 for US$9.5bn).
  
• Energy and rail continue to be strong performers for the business.
  
• Weakest performance was in insurance company Geico which produced lower underwriting earnings compared to the last year.

How the market is interpreting the report

Generally, buybacks are seen as a show of confidence in the future of the business, so this has been well-received.

It’s an interesting time to be spending money when markets are at record highs, but investors should note that Berkshire Hathaway still holds a vast cash reserve at US$365.5bn. While you could call it a “spending spree” by Berkshire Hathaway standards, it’s pretty restrained by most measures.

It does indicate some confidence in the market though, compared to Buffett’s past statements of seeing limited opportunities to deploy capital.

The purchase of Taylor Morrison is complementary to Berkshire Hathaway’s existing home-building company Clayton Properties and shouldn’t raise any concerns.

However, the top-up of US$10bn on Google is a big bet, and comes at a point where Google is aggressively fundraising to pursue its AI goals. 

The investment positions Berkshire Hathaway closer to this particular theme, and to infrastructure. Buffett himself had been the initiator of Berkshire Hathaway’s investments in Google back in 2025, which may give investors an added measure of confidence.

Buffett has previously announced plans to divest his shares by 2034 through charitable foundations with the help of his children – this should be viewed as estate planning and a desire to see his wealth deployed during his children’s lives, rather than any sign of his views on Berkshire Hathaway.

Copy-paste investments for Australian investors

Australian investors wanting to replicate some of the activities Berkshire Hathaway has made have a few options to consider.

Direct purchases

• Direct share purchases in Alphabet, American Express, Apple, Bank America Corporation, Coca-Cola Company and Kraft Heinz using a platform with US trading access.
• Purchase direct Berkshire Hathaway (NASDAQ: BRK/A or NASDAQ: BRK/B) shares for exposure to the entire strategy.

Indirect, using ETFs with either direct or similar exposures

• Use a US tech-focused ETF to amp up your exposure to the likes of Alphabet and Apple, such as Betashares Nasdaq 100 ETF (ASX: NDQ) or Global X FANG+ ETF (ASX: FANG)
• Purchases of US Treasuries through ETFs like VanEck 1-3 Month US Treasury Bond ETF (ASX: TBIL) or Global X US Treasury Bond (Currency Hedged) ETF (ASX: USTB)
• Infrastructure purchases to replicate Berkshire Hathaway’s energy and railroad companies such as iShares US Infrastructure ETF (ASX: IFRA) or Vanguard Global Infrastructure Index ETF (ASX: VBLD) – these don’t hold Berkshire Hathaway’s exact companies but will give you exposure to that style of strategy.
• Berkshire Hathaway has Japanese equity holdings and a similar type of exposure might be found via iShares MSCI Japan ETF (ASX: IJP) or Betashares Japan Currency Hedged ETF (ASX: HJPN)
• The Global Masters Fund (ASX: GFL) holds Berkshire Hathaway shares as the bulk of its portfolio
• Follow a wide-MOAT strategy that adheres to Buffett’s philosophies (though not necessarily the same stocks) like VanEck Morningstar Wide Moat ETF (ASX: MOAT).

There are plenty of indirect exposures out there, so do your due diligence before choosing any of these for your portfolio and ensure they fit your strategy.

It’s also worth noting that Berkshire Hathaway’s structure as a diversified conglomerate structure is sometimes considered similar to Australian listed investment company, Washington H. Soul Pattinson (ASX: SOL). They don’t invest in the same holdings nor necessarily follow the same philosophies but it is a domestic option to consider closely.

An eye to quality and value

Investing like Berkshire Hathaway’s new CEO is not a big stretch from the entrenched wisdom and philosophy that investors were used to seeing from Warren Buffett.

Look for companies with high-quality fundamentals and deep MOATs that allow them to hold market share and retain competitive advantages, and buy them when they are good value for the embedded earnings over time. Don’t overpay.

Stretched markets can make opportunities harder to find, but if the right company comes up as a Buy, then it’s still worth buying.

Finally, holding a cash buffer in volatile markets can allow you to take advantage of opportunities and be resilient through challenges.

Greg Abel may have been spending some of Berkshire Hathaway’s cash reserves, but there is still a very deep pool available.

You can read the full Berkshire Hathaway report here.