Berkshire Hathaway begins repurchasing shares, CEO Greg Abel buys $15 million in stock
Greg Abel speaks at the Berkshire Hathaway Annual Shareholder Meeting on May 3, 2025 in Omaha, Nebraska.
CNBC
Berkshire Hathaway It said Thursday it was continuing to buy back its own shares for the first time since 2024, and also bought $15 million worth of stock, an amount equal to new CEO Greg Abel’s 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 said in a regulatory filing that it began repurchasing its Class A and B shares on Wednesday. Berkshire’s policy allows the company to buy back shares if the CEO, after consulting with chairman Warren Buffett, believes the buyback price is below Berkshire’s intrinsic value, according to its annual report released over the weekend.
“I’ve certainly talked to Warren. So my approach to this was obviously to look at the value, have a view of the intrinsic value, consult with Warren on value and timing,” Abel told CNBC’s “Squawk Box” on Thursday.
Abel said normally the company would not announce the beginning of its buyback plan. “We felt it was important to communicate with our shareholders, our partners, our owners about the leadership transition,” he said.
Berkshire shares are down 10% from their record high in May. The stock came under pressure earlier this week after the company reported a nearly 30% drop in operating profit in the fourth quarter, largely due to weakness in its insurance business.
Berkshire’s last share buyback was in the second quarter of 2024.
Abel’s personal purchase
In a separate filing, Abel disclosed that he personally purchased $15 million worth of the holding’s shares. The 62-year-old executive’s acquisition comes just over two months into his tenure running the Omaha-based conglomerate.
The transaction boosts his personal stake in Berkshire at a time when some investors are questioning whether Buffett’s successor has a similar “game view.” Buffett owns about 37.5% of Berkshire’s Class A shares and has no intention of selling his shares except for charitable donations. He had previously said that the holding company represented roughly 99.5% net worth.
“Absolute alignment with our shareholders, partners and owners is critical,” Abel told CNBC. “I already own some shares, but my goal was to continue to align with them… With Warren’s transition, I’m a firm believer in Berkshire as CEO, and I’m inheriting a company with incredible fundamentals.”
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 he is at the helm of Berkshire and hopes it will be “20 years.”
Since taking over, Abel has emphasized the continuity of Buffett’s investment philosophy. He used his first annual shareholder letter over the weekend to reassure investors that the conglomerate’s culture of fiscal conservatism and disciplined investment will continue “in perpetuity.”
