US EditionBerkshire Hathaway begins repurchasing shares, CEO Greg Abel buys $15 million in stock
Berkshire Hathaway restarted share buybacks after nearly two years, with CEO Greg Abel investing $15 million of his salary to show confidence amid a 30% earnings drop.
- Berkshire Hathaway resumed repurchasing Class A and Class B shares this week, starting buybacks Wednesday, while CEO Greg Abel disclosed a $15 million personal stock purchase in a regulatory filing.
- Under Berkshire's buyback policy, the stock had come under pressure earlier this week after a nearly 30% decline in operating earnings, prompting buyback considerations, Abel told CNBC's `Squawk Box`.
- Greg Abel said he will use his full salary each year to buy Berkshire shares, owning $164.4 million before his latest purchase and holding roughly 99.5% of his net worth in the company.
- Management emphasized alignment with owners and partners, framing the buybacks and Abel's disclosure as communication to shareholders during the leadership transition, with Abel telling CNBC that `absolute alignment with our shareholders, our partners, our owners, is critical`.
- The purchase comes just over two months into Abel's tenure, and he used his first shareholder letter to emphasize continuity with Buffett's investment philosophy, who owns about 37.5% of Berkshire's Class A shares.
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The CEO's decision comes at a time when the company's cash reserves and short-term US Treasury bonds have reached a record $373 billion.
US Stock Market | Berkshire Hathaway resumes share repurchases, CEO Abel buys stock for himself
Berkshire Hathaway has restarted buying back its own shares after a long break. This move comes as Greg Abel takes over as CEO from Warren Buffett. Abel himself has bought more Berkshire shares, showing his commitment. The company is also addressing wildfire claims and its stake in Kraft Heinz. These actions signal a new phase for the conglomerate.
Associated Press News
Berkshire Hathaway resumes buybacks and CEO supports Kraft's decision to pause its split
Berkshire Hathaway is buying back shares for the first time in nearly two years, and new CEO Greg Abel said he has no immediate plans to sell off Kraft Heinz shares now that the packaged food giant has shelved its plan to split the company into two.
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