Berkshire Hathaway Begins to Buyback Shares, CEO Greg Abel Buys $15 Million in Shares

Berkshire Hathaway On Thursday it resumed repurchasing its own shares for the first time since 2024, and separately new CEO Greg Abel bought himself $15 million worth of stock, equal to his after-tax annual salary.

Abel told CNBC that he will continue to use his salary to buy Berkshire shares every year.

The Omaha-based conglomerate disclosed in a regulatory filing that it began buying back its Class A and Class B shares on Wednesday. Berkshire’s policy allows the company to buy back shares when the chief executive believes the buyback price is below Berkshire’s intrinsic value after consulting with chairman of the board Warren Buffett, according to an annual report released over the weekend.

“I absolutely talked to Warren. So how I approached it, obviously looking at value, having an intrinsic value perspective, consulted with Warren on value and timing,” Abel told CNBC’s “Squawk Box” on Thursday.

Abel said the company typically doesn’t disclose the start of a buyback plan. “We felt it was important to communicate the leadership transition to our shareholders, our partners, our owners,” he said.

Berkshire’s shares have fallen 10% since their record highs in May. The stock came under pressure earlier this week after the firm reported a 30% drop in its operating earnings in the fourth quarter due to weakness in its insurance business.

Berkshire last repurchased shares in the second quarter of 2024. Berkshire B shares added 1% in early trading Thursday.

In a separate filing, Abel disclosed that he had personally purchased $15 million worth of conglomerate stock. The 62-year-old executive’s buyout came a little more than two months into his tenure running the Omaha-based conglomerate.

The transaction increases his personal stake in Berkshire at a time when some investors have questioned whether Buffett’s successor has comparable “skin in the game.” Buffett owns about 37.5% of Berkshire’s Class A shares and has no intention of selling his stake, except for his charitable contributions. He has previously stated that the conglomerate represents approximately 99.5% of his net worth.

“Full alignment with our shareholders, our partners, our owners is critical,” Abel told CNBC. “I already own some shares, but the goal was to continue to demonstrate alignment with them… As CEO, I absolutely, obviously, believe in Berkshire. With the transition from Warren, and I inherit a company with an incredible foundation.”

Before the latest purchase, Abel, a longtime Berkshire executive who previously oversaw the company’s non-insurance operations, owned $164.4 million worth of Berkshire stock, according to FactSet.

The CEO said he is committed to doing this every year at the helm of Berkshire, which Abel hopes will be “20 years.”

Abel has emphasized continuity with Buffett’s investment philosophy since taking the helm. He used his first annual shareholder letter over the weekend to reassure investors that the union’s fiscal conservatism and disciplined investment culture will continue “in perpetuity.”