In Warren Buffett's last few years at the helm of Berkshire Hathaway (BRKA -0.13%) (BRKB -0.24%), the company didn't do much buying and hoarded cash. The conglomerate was a net seller of stocks in the last few years leading up to the handoff to new CEO Greg Abel in January. By the first quarter of 2026, the firm had amassed a record $397 billion in cash in the portfolio.
That changed in the second quarter of 2026, as Berkshire Hathaway became a net buyer of stocks for the first time in 14 straight quarters as a net seller. The company bought roughly $23.5 billion in stocks last quarter and sold just $3.7 billion. As a result, the massive pile of cash dropped to approximately $365 billion.
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One of the biggest moves Abel made was buying 17.5 million shares of Delta Air Lines (DAL -2.33%) stock, increasing the position by 44%. Berkshire now holds 57.3 million shares of Delta, valued at $5.4 billion, up from $2.6 billion after Q1. Delta is now the 13th-largest position in the Berkshire Hathaway portfolio, representing about 1.8% of the portfolio. Further, Berkshire now holds 8.7% of Delta stock, up from 6.1% in the first quarter.
Back on board with Delta
Berkshire Hathaway has owned Delta in the past; in fact, the conglomerate held the stock from 2016 through 2020 and built up a sizable stake. But when the pandemic hit, Buffett exited his position in Delta entirely, selling off the remaining 61 million shares in Q2 2020.
It wasn't just Delta, however. Buffett sold off all of his airline shares when the pandemic hit, dumping his holdings in American Airlines, United Airlines Holdings, and Southwest Airlines. Most surprising was not that he sold, but when he sold -- at the bottom, meaning he got fearful and locked in losses rather than ride it out.
Also, it took six years for Berkshire to get back on board with commercial airline stocks, even though the two major carriers, Delta and United, have performed well. In Q1, Berkshire bought 39.8 million shares of Delta, adding another 17.5 million in Q2. Delta is the only airline stock that Berkshire Hathaway currently owns.
Delta has had a resurgence since then, with an average annual return of 15% over the past five years. It has averaged a 25% return over the past three years and is up 33% over the past 12 months and 19% year to date.
The good thing is that Berkshire and Abel do not appear to be too late to buy in, as Delta stock is still relatively cheap, trading at 13 times earnings and 12 times forward earnings. Wall Street is almost all in on Delta, with 89% of analysts rating it a buy. Delta stock has a median price target of $105 per share, implying a 28% gain over the next 12 months.
