Berkshire Resumes Buybacks, CEO Buys In
Berkshire Hathaway has resumed its share buyback program for the first time since 2024. In a strong signal of confidence, new CEO Greg Abel also personally bought $15 million of stock and told CNBC he plans to invest his entire after-tax salary in company shares annually.
The resumption of buybacks adheres to the long-standing company policy to repurchase shares only when leadership believes they are trading below their intrinsic value. New CEO Greg Abel consulted with his predecessor, Warren Buffett, who remains chairman, before initiating the purchases. This marks the first time Berkshire has bought back its own stock since the second quarter of 2024. The pause in repurchases had drawn investor attention as the company's cash pile grew to more than $373 billion. Greg Abel officially took over as CEO on January 1, 2026, after a long career within the conglomerate. He previously served as vice chairman of non-insurance operations and was the longtime head of Berkshire Hathaway Energy. Abel's pledge to invest his salary comes after his annual compensation was set at $25 million. This is a significant departure from Warren Buffett's famous $100,000 annual salary, which he maintained for over 40 years. The move is seen as a major vote of confidence from the new leadership as Berkshire's stock has been under pressure. The share price has not regained its all-time high from May 2025, when Buffett announced his retirement. In a break from tradition, the company announced the buyback's commencement in a specific regulatory filing. This was described as a move to provide transparency to investors during the leadership transition.
