The Omaha investment giant’s second quarter earnings showed a US$12.6 billion decrease in cash on the company’s balance sheet compared with the end of last year, and a US$26 billion surge in equity securities under the leadership of Canadian-born Abel, who took over the chief executive post from Warren Buffett on Jan. 1. (The Logic)

Talking point: Investors may read the balance sheet as a sign that Abel is more confident in the stock market than his predecessor was at the end of last year. The question is whether investors will put as much weight on Abel’s reading of the global economy as they did Buffett’s. As Berkshire Hathaway’s filings note, the company’s stock investments have historically been focused in a handful of key companies, and its top holdings are now Alphabet, American Express, Apple, Bank of America and Coca-Cola. Under Abel, Berkshire Hathaway not only increased its exposure to Alphabet by about US$10 billion, but also resumed repurchasing its own stock.  

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