Berkshire Hathaway has resumed share buy-backs for the first time in almost two years as new Chief Executive Officer (CEO) Greg Abel begins to reshape the investment conglomerate after taking over from legendary investor Warren Buffett.
The repurchases that started this week for the first time since May 2024 show the company believes its shares are trading below their intrinsic value and allow it to use some of its US$373.3 billion of cash.
Abel said the repurchases were a long-standing part of Berkshire’s capital allocation strategy and helped generate value for investors over the long term.
Berkshire historically buys back shares only when management believes the market price undervalues the company’s underlying businesses.
The new Chief Executive Officer also disclosed he purchased 21 of Berkshire’s Class A shares this week for about $15 million.
The company usually does not disclose the start of the repurchases.
"We felt it was important to communicate to our shareholders, our partners, our owners, with the transition of leadership," Abel told CNBC in an interview.
Abel said he intended make more such purchases in the future because it reflected his belief in Berkshire Hathaway’s prospects.
Buffett led Berkshire, one of the world’s most successful investment companies, for more than 60 years before stepping aside as CEO at the end of 2025 while remaining Chairman.
Berkshire Hathaway Inc Class B share (NYSE: BRK.B) ended US$12.92 (2.65%) higher at $500.40 on Thursday, capitalising the company at $1.08 trillion (A$1.55 trillion).
Berkshire owns a large number of businesses but has struggled in recent years to find major acquisitions that meet its strict investment criteria, leaving it holding a lot of cash.
