Berkshire reinitiates buyback, new CEO uses $117 million to increase holdings, Abel: Communicates with Buffett daily

Berkshire Hathaway resumed stock buybacks for the first time since 2024, while new CEO Greg Abel also purchased company stock worth $15 million (approximately HKD 117 million), an amount equivalent to his after-tax annual salary. Abel stated that as long as he holds this position, he will continue to use his entire salary to buy Berkshire stock each year. Berkshire B shares (BRK.B) closed at $500.4 on Thursday, up 2.65%. Buybacks Resumed After Q2 2024 Berkshire disclosed in regulatory filings that it began repurchasing A and B shares on Wednesday. According to the company's annual report released last weekend, Berkshire allows buybacks when the CEO (after consulting with Chairman Warren Buffett) believes the repurchase price is below the company's "intrinsic value." The last time Berkshire repurchased stock was in Q2 2024. In an interview with CNBC, Abel said, "I have absolutely talked with Warren about this. So my approach is to first assess value, form a view on intrinsic value, and then discuss value and timing with Warren." He added that the company typically does not publicly announce the start of buybacks, but "we believe it is important to communicate this to shareholders, partners, and owners during the leadership transition." At 62 years old, Abel took over from 95-year-old Buffett in January this year. Berkshire's stock price has fallen 3% this year and is down 10% from its historical high in May last year. The company recently reported a nearly 30% drop in fourth-quarter profits, primarily due to weak insurance business. Abel Commits to Continued Purchases After Salary Additionally, Abel personally purchased $15 million worth of company stock, stating, "It is crucial to maintain absolute alignment with shareholders, partners, and owners. I already hold some stock, but the goal is to continue to demonstrate this consistency. As CEO, I clearly have a strong belief in Berkshire. I inherited a company with an incredible foundation from Warren." According to CNBC, citing FactSet data, before the latest purchase, Abel already held $164.4 million worth of stock. He stated that during his tenure leading the company, he would purchase stock annually with his after-tax salary and hopes to continue this for "20 years." Since taking over, Abel has emphasized continuing Buffett's investment philosophy. In his first letter to shareholders, he assured that the company's culture of conservative finance and disciplined investing would "continue indefinitely." Discussing Market Trends and Thoughts with Buffett When asked about Buffett and the board's views on his "salary reinvestment" plan, Abel said, "They are clearly very supportive." He added that they expressed, "This is the Berkshire style." Abel also revealed that Buffett, who still serves as the company's chairman, comes to the office every day, and whenever he is in Omaha, the two communicate almost daily. Even when he is traveling, he often proactively contacts Buffett to discuss recent market trends and thoughts. "Even if it's not every day, we talk about once every few days."