Key Highlights
- For the first time since Q2 2024, Berkshire Hathaway has reinitiated its share repurchase program
- CEO Greg Abel invested his complete after-tax annual compensation—$15.3 million—into Class A shares
- Before authorizing repurchases, Abel sought guidance from Warren Buffett
- The company finished 2025 holding $373.3 billion in cash reserves; Abel believes buybacks are currently the best capital allocation choice
- Cryptocurrency investments were explicitly rejected by Abel, citing absence of fundamental value
Greg Abel, Berkshire Hathaway’s newly appointed CEO, is making bold moves that demonstrate his commitment to the storied investment firm—both financially and strategically.
Berkshire Hathaway Inc., BRK-B
On Thursday, Berkshire revealed it had reinitiated share repurchases, marking the first buyback activity since the second quarter of 2024. Abel announced this decision during a CNBC interview, describing it as a “one-time” public disclosure he deemed important given the recent change in leadership.
According to Berkshire’s standing buyback guidelines, share repurchases may occur when the chief executive—following consultation with the board’s chairman—believes the trading price sits below the company’s intrinsic worth. Abel confirmed he discussed the matter with Buffett prior to taking action.
“I absolutely talked to Warren,” Abel stated.
Buffett, who relinquished his CEO role at the beginning of 2026 after leading the conglomerate for six decades, allegedly told Abel regarding his personal stock purchase: “No one else in corporate America does this. This is so Berkshire.”
In a concurrent regulatory filing, Abel revealed he acquired 21 Class A shares totaling $15.3 million—representing 100% of his after-tax yearly earnings.
During his CNBC appearance, Abel pledged to continue this practice annually throughout his tenure as chief executive. His current holdings stand at 249 Class A shares, valued at approximately $189 million.
Unlike typical corporate executives, Abel and his Berkshire colleagues receive zero equity-based compensation. Every share Abel owns was purchased through open market transactions using his personal funds.
Abel has substantial financial capacity for such investments. In mid-2022, he divested a 1% ownership interest in Berkshire Hathaway Energy to the parent company for $870 million. He subsequently deployed over $100 million from those proceeds into Berkshire stock purchases during 2022 and 2023.
The Rationale Behind Resuming Buybacks
Berkshire concluded 2025 with $373.3 billion in cash and Treasury securities, representing a modest decrease from the peak of $381.7 billion recorded at Q3’s close. This massive war chest has been largely idle.
Abel explained that given the magnitude of these cash reserves, share repurchases represent the most prudent allocation strategy at present—surpassing acquisitions or alternative investment opportunities.
During Berkshire’s previous buyback period in early 2024, the company deployed $2.9 billion. Abel declined to specify the anticipated expenditure or duration for the current repurchase initiative.
Berkshire’s Class B shares advanced approximately 1.9% Thursday to reach $496.36, even as the S&P 500 registered modest declines. Prior to Thursday, the stock had retreated 3% year-to-date.
Investment Avenues Abel Has Ruled Out
Abel delivered an unambiguous message regarding cryptocurrency: it remains off-limits.
“I don’t think you’ll see crypto,” he informed CNBC. “I would never say never, but I just don’t see it.”
He pointed to cryptocurrency’s deficiency in intrinsic value, maintaining the philosophical stance Buffett championed during his entire leadership period.
The buyback revelation follows closely after Berkshire disclosed a challenging fourth quarter, with operating earnings declining 30% and insurance underwriting profits plummeting over 50%. The stock experienced significant selling pressure Monday after that earnings release.
In his inaugural letter to shareholders, Abel emphasized capital stewardship: “We will assess value carefully, act patiently, and hold for the long term — preferably forever.”
Berkshire Class B shares finished Thursday’s session up 1.33%.
