Seeking Alpha commentary below pre Q2 data release tomorrow am. Hope we discover major buybacks when P/B was ~1.4

“Following Warren Buffett's long tradition, Berkshire Hathaway (BRK.B) (BRK.A), now helmed by Greg Abel, is set to post Q2 results on Saturday at 7:00 AM Central Time (8:00 AM ET).

The Omaha, Nebraska-based investing behemoth is expected to report Q2 operating earnings of $10.8B, according to the consensus estimate, up from $10.2B in Q1.

Investors, though, will also be focused on the company's cash and Treasury holdings, which have continued to pile up for years. At March 31, 2026, it stood at $397.4B.

Steve Check, president and chief investment officer of Check Capital Management, which holds ~$500M of Berkshire stock and ~$600M in Berkshire options, wants to see the company use more of its cash holdings for stock buybacks.

"Stock buybacks are the most natural use of the cash if the stock is priced right," he told Seeking Alpha in an interview. Buying back about $50B of stock per year would likely keep Berkshire Hathaway's (BRK.B) (BRK.A) cash holdings about even, he figures.

He was a “little disappointed” in the ~$234M of stock the company repurchased in the first quarter of the year. Check expects that to change. "My understanding is that, when we get the quarterly numbers, we're going to find out the buyback was quite significant" in Q2, he said.

Investors have curbed their expectations of using the cash hoard for any “elephant-sized” acquisitions. Buffett, who remains chairman of Berkshire, is well known for his discipline in not buying when asset valuations are rich. In prior years, he has made plain his preference to acquire stakes in well-run publicly traded companies, rather than buy entire companies outright.

After Q2 ended, Berkshire (BRK.B) closed on what's considered a relatively small acquisition — the $6.8B purchase of homebuilder Taylor Morrison Homes.

When it comes to Berkshire Hathaway's (BRK.A) (BRK.B) operations, Check will be looking at insurance, especially the underwriting side. While the company owns a sprawling range of businesses, "insurance is certainly the engine of Berkshire," he said. Underwriting is expected to be a bit tougher this quarter, he said. "It's a bit softer market."

Q2 insurance underwriting income is expected to be $2.05B, according to the Visible Alpha consensus. That's up from $1.72B in the prior quarter but down 19% from Q2 2025.

Check will also be looking at its insurance float, which stood at $176.9B at the end of Q1. If the company makes 4.4% on that, that's a significant number for what is essentially “free” money, he said.

For the overall operations, the money manager expects results to be "flat to up" on most subsidiaries. But neither is Check expecting blockbuster performance from the company. He calls the company a "good cornerstone... a very steady 8%-10% grower." In the past year, Berkshire B shares rose ~13%, lagging the S&P 500's 22% increase.

As for Abel's performance at the company, "it's pretty early on," Check said. Still, he's happy with the choice of Buffett's successor. "We couldn't ask for a better choice," he said.

"I don't think Greg Abel is going to do anything dumb. He might be a little bit on the conservative side, but so is Warren Buffett, for that matter," Check said.”