Berkshire Hathaway Inc. (NYSE:BRK.B) shares climbed roughly 2.7% on Tuesday, closing near $510.50 after touching a session high of $513.27. The broader S&P 500 added 0.24% on the same day, underscoring the relative strength of the conglomerate's stock. The rally brought Class B shares within 1.2% of their 52-week peak, reflecting renewed investor confidence driven by an aggressive share repurchase program.
According to early estimates, Berkshire's second-quarter buybacks are approaching $8.5 billion, a dramatic increase from the $234.2 million spent in the first quarter. All first-quarter repurchases occurred in March. The projected quarterly figure is roughly 36 times higher than the prior period, signaling a significant acceleration in capital return to shareholders. The estimates, reported by Barron's, are based on Warren Buffett's July ownership disclosure and have not yet been officially verified by the company.
The market value of Berkshire surged by approximately $29 billion during Tuesday's session, based on the official Class A-equivalent share count from March. This figure is provisional, as second-quarter share repurchases may have reduced the overall share count. The bulk of the gains came on Tuesday, following a 0.7% advance the previous week and a 0.5% rise on Monday.
Berkshire's two largest equity holdings also contributed to the day's performance. Apple Inc. (NASDAQ:AAPL) rose 0.9%, while The Coca-Cola Co. (NYSE:KO) jumped 5.1%. Barron's estimates Berkshire's stakes in these companies at approximately $77 billion and $35 billion, respectively. If holdings were maintained, these moves would provide a combined pre-tax boost of about $2.5 billion, representing less than 10% of Berkshire's total market value gain. Analysts suggest the disparity indicates that investors are also reassessing the value of buybacks and capital allocation strategies.
UBS analyst Brian Meredith reiterated a Buy rating on Berkshire and raised his Class B target price to $585, representing roughly 14.6% upside from Tuesday's close. He cited modest earnings improvements and reduced assumptions for catastrophe losses as key factors. Barron's noted that prior buyback estimates for the second quarter had ranged between $5 billion and $11 billion.
In addition to buybacks, Berkshire recently completed its acquisition of Taylor Morrison Home Corp. on Friday, with an equity value of $6.8 billion and an enterprise value of $8.5 billion. The combined buyback and acquisition equity value totals approximately $15.3 billion, nearly 4% of Berkshire's $380.2 billion cash reserves as of March. CEO Greg Abel stated, "Together, we will help more Americans achieve their dream of homeownership." The unified homebuilding platform completed nearly 23,000 site-built closings in 2025, operating across 21 states and 52 housing markets, making it the fourth-largest homebuilder in the United States.
Operating earnings for the first quarter rose 18% to $11.35 billion. Insurance underwriting grew 29%, BNSF reported a 13% earnings gain, while insurance investment income declined by 7%. Investors now look ahead to Wednesday's Federal Reserve policy decision and Apple's earnings release, both of which could influence Berkshire through interest rate changes and shifts in portfolio values. Barron's anticipates Berkshire will release its second-quarter filing near August 1.
Risks remain, including the possibility that the buyback estimate may not align with the reported amount. Catastrophe losses and soft housing demand could weigh on operating earnings, while declines in equity values would further reduce reported book value. Tuesday's rally reflected gains beyond just Apple and Coca-Cola, and the capital-return argument now awaits confirmation in the upcoming quarterly filing.
