In his first full quarter since taking the reins from Warren Buffett, Berkshire Hathaway (BRK.A, BRK.B)’s new CEO Greg Abel has finally made his move. And it’s a two-pronged signal that’s getting investors’ attention.
The Omaha-based conglomerate recently disclosed that Abel purchased $15 million worth of Berkshire stock with his own money—and pledged to use his entire salary to keep buying shares every year he’s at the helm. Separately, the company quietly resumed share repurchases for the first time since the second quarter of 2024.
For investors who’ve been wondering when the post-Buffett era would start to take shape, these twin developments offer the clearest answer yet.
Berkshire’s shares have been in a holding pattern since last May, when Buffett announced his intention to step down as CEO by year-end. Despite the S&P 500 rallying more than 21% over the same period, Berkshire’s Class A stock has yet to reclaim the all-time high it hit just before Buffett’s retirement news broke. The market has clearly been recalibrating for life without the “Oracle of Omaha.”
The fourth-quarter earnings report released in February did little to change the narrative. Insurance underwriting income took a sharp hit, and most of Berkshire’s operating segments posted only single-digit earnings growth. More frustrating for some shareholders: the company’s cash pile swelled to a staggering $373 billion, yet Abel’s first shareholder letter largely reiterated familiar Buffett principles. Investors were left waiting for the new CEO to show his hand on capital allocation.
Abel’s first move was personal.
By purchasing $15 million worth of Berkshire stock out of his own pocket—and committing to use his full salary for annual purchases going forward—Abel has put real money behind his confidence in the company’s future. For a CEO earning tens of millions annually, the dollar amount may not be life-changing. But the symbolism matters: insider buying has long been viewed on Wall Street as one of the strongest signals that executives believe their stock is undervalued.
What’s more, Abel isn’t making a one-time statement. His pledge to buy “every year” suggests a long-term conviction that’s meant to reassure investors: even without Buffett in the corner office, the person running the show remains all in.
More consequential, perhaps, is the return of share repurchases.
Berkshire’s buyback policy is unconventional. Unlike most companies with formal programs, Berkshire authorizes repurchases only when its CEO and chairman (Warren Buffett) jointly agree that the stock is trading at a significant discount to intrinsic value. That threshold hadn’t been met since the second quarter of 2024—until now.
Abel confirmed in a CNBC interview that he consulted with Buffett before initiating the buybacks, and that the company’s chairman signed off. In other words, the man who built Berkshire believes the stock is cheap enough to buy back.
The exact amount spent or planned remains undisclosed; investors will have to wait for first-quarter earnings in a few months. But the act of restarting buybacks, in itself, marks Abel’s first meaningful move in capital allocation since taking over.
Taken together, Abel’s personal purchases and the corporate buybacks tell a coherent story:
Confidence, demonstrated twice over. One signal comes from the CEO’s personal wallet; the other from the corporate treasury. Both point to a shared belief that Berkshire’s stock is undervalued.
Capital allocation is awakening. The knock against Abel, fair or not, has been his willingness to sit on $373 billion in cash. By opening the buyback spigot—even modestly—he’s showing he can act when price is right. This could foreshadow more aggressive deployment ahead, whether through investments or acquisitions. Both require a healthy (and fairly valued) stock as currency.
Continuity with a touch of initiative. Abel has repeatedly emphasized his commitment to Buffett’s principles. But choosing this moment to buy shares—personally and corporately—suggests he’s not merely a caretaker. He’s willing to act when he sees opportunity.
The big unknown is scale. A token buyback of a few hundred million dollars would have little impact on a company with a market cap north of $700 billion. But if Abel signals a systematic program to deploy a meaningful portion of Berkshire’s cash hoard into its own stock, it could catalyze a revaluation.
Investors will be watching the first-quarter report closely for the first hard numbers. In the meantime, the message is clear: Berkshire’s new CEO has confidence in the company’s future, and he’s putting money behind it—his own and the company’s.
For those wondering when the post-Buffett era would begin in earnest, this feels like the starting gun. When a CEO buys with his own money and authorizes buybacks with the company’s, he’s betting the stock won’t stay at these levels forever.
