On March 6, 2026, Berkshire Hathaway announced on Thursday that it has resumed repurchasing its own shares after nearly two years, marking the first major move by new CEO Greg Abel. Abel succeeded Buffett as CEO in January 2026, beginning to leave his mark on the conglomerate.
Abel's Personal Investment Shows Confidence
The buyback plan was initiated on Wednesday, marking Berkshire's first stock repurchase since May 2024. According to the company's announcement, these buybacks are expected to help reduce its large cash reserve, which is currently around $373.3 billion. Buffett had previously stated that the cash reserve grew because of difficulty in finding suitable investment opportunities.
Abel disclosed that he personally purchased 21 shares of Berkshire's Class A stock on Wednesday for approximately $14.6 million, an amount corresponding to the post-tax value of his $25 million salary. Abel intends to continue similar stock purchases in the future. Currently, the market value of his Class A shares in Berkshire is about $187 million.
Transaction Boosts Market Confidence
In an exclusive interview with CNBC, Abel stated that he consulted with Buffett regarding the stock repurchase and his personal stock purchases. The disclosed transactions might alleviate concerns about Berkshire being overly conservative in capital utilization and demonstrate Abel's leadership in financial decision-making for the company.
Abel stated that Berkshire would conduct buybacks when the stock price is below intrinsic value to create long-term value for shareholders. He also emphasized that the move reflects confidence in the company's continued growth and will provide better returns for shareholders.
This buyback plan and Abel's stock purchase actions signify a strategic shift pushed by Berkshire Hathaway's new leadership. Abel's actions demonstrate strong confidence in the company's future and raise investor expectations of his management skills and decision-making.
