Berkshire Hathaway begins repurchasing shares, CEO Greg Abel buys $15 million in stock

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

Abel told CNBC he will continue using his full salary to purchase 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 repurchase stock whenever the chief executive, after consultation with the chairman of the board i.e. Warren Buffett, believes that the repurchase price is below Berkshire’s intrinsic value, according to its annual report released over the weekend.

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

“This is a one-time event to let shareholders know,” Abel added. “We felt it was important to communicate to our shareholders, our partners, our owners, with the transition of leadership.”

Shares of Berkshire have fallen 10% from its record high from May. The stock came under pressure earlier this week after the firm reported a near 30% decline in its operating earnings for the fourth quarter, due in large part to weakness in the insurance business.

The last time Berkshire repurchased shares was the second quarter of 2024.

In a separate filing, Abel disclosed that he personally purchased $15 million worth of the conglomerate’s stock. The 62-year-old executive’s purchase 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 aside from his charitable giving. He has previously said the conglomerate represents roughly 99.5% of his net worth.

“Absolute alignment with our shareholders, our partners, our owners, is critical,” Abel told CNBC. “I already have some shares, but the goal was to continue to demonstrate alignment with them… As the CEO, I absolutely, obviously, believe in Berkshire. with the transition from Warren, and I inherited a company that has 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 was committed to doing this every year he is at the helm of Berkshire, which he said he hopes is “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 conglomerate’s culture of financial conservatism and disciplined investing will continue “into perpetuity.”