Berkshire Hathaway’s new CEO, Greg Abel, recently purchased $15 million worth of company stock, roughly equal to his entire after-tax salary. The purchase was revealed in regulatory filings and comes at the same time the company has restarted its own share buyback program. The purchase is notable because it comes early in Abel’s career as CEO, after Warren Buffett stepped down from the role at the beginning of 2026 while remaining chairman. Abel explained that the decision to disclose the buyback activity was meant to provide transparency during the leadership transition. He also confirmed that Buffett was consulted on the timing and valuation of the repurchase decision.
Berkshire has a policy allowing it to buy back shares when management believes the stock is trading below its intrinsic value. This is the first repurchase since May 2024. The company had previously bought back large amounts of stock from 2018–2024 before pausing when the share price hit record highs in 2025.
Shares of Berkshire Hathaway’s Class B stock rose about 1% in premarket trading following the news. However, the stock has had a mixed performance recently. It is down about 3% so far in 2026, fell almost 5% after its latest earnings report, currently trading below key moving averages, and gained 11% in 2025, underperforming the S&P 500, which rose 16%.
Abel’s $15 million stock purchase and Berkshire’s renewed buybacks suggest that management believes the stock is currently undervalued. If investors agree with that assessment, this could help support or gradually increase the stock price over time.
New CEO Buys $15 million in stock, Berkshire Restarts Buybacks
This seems like a really big and bold purchase, especially if this is Abel’s first few months in the role. It’s understandable that their expectations are positive, but if this buyback has the opposite effect, it may not reflect well on management or be the best investment Abel has made early in his new career path.
ReplyDeleteSuch a bold purchase like this can be very jarring for someone who does not understand the reasoning behind it. A large company like Berkshire Hathaway has the reputation that people trust when they make large decisions. Hopeful Abel is right in his choice and we see the company prosper, but large purchases like this can be a groundbreaking move for a company that changes the direction of the firm's future.
ReplyDeleteThe insider purchase of 15M, combined with the repurchases, is a strong indicator of management conviction, especially during a change in management. Macro-wise, it’s also a function of how large companies allocate capital, especially at a time when interest rates are still relatively high, and if they believe that the best risk-adjusted return is to repurchase their stock.
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