Berkshire Hathaway announced on Thursday that it has resumed share repurchases for the first time since 2024.
The company’s new CEO , Greg Abel, bought $15 million worth of stock personally, which is equivalent to his after-tax annual salary.
In an interview with CNBC, Abel stated that he will continue to use his full salary to purchase Berkshire shares each year.
The Omaha-based conglomerate announced in a regulatory filing that it has begun repurchasing its Class A and Class B shares, while its policy allows the company to buy back stock whenever the CEO, after consulting the chairman of the board (Warren Buffett) believes the repurchase price is below Berkshire’s intrinsic value.
Abel said, “I absolutely talked to Warren. So how I approached it was, obviously looking at the value, having a view of intrinsic value, consulted with Warren relative to the value and the timing.”
“We felt it was important to communicate to our shareholders, our partners, our owners, with the transition of leadership,” he said.
“As the CEO, I absolutely, obviously, believe in Berkshire. with the transition from Warren, and I inherited a company that has an incredible foundation.”
Shares of Berkshire have declined 3% this year and 10% from their all-time high last May.
Berkshire B shares rose 1% in premarket trading following the stock repurchase announcement.
By CEO NA Editorial Staff
