【Next Generation of the Stock God】Berkshire Reinitiates Stock Buybacks, Abel: I Communicate with Buffett Almost Daily, What Is the Most Difficult Task After Taking Over?

Warren Buffett, the Oracle of Omaha, has stepped down from the front lines, and Greg Abel has officially taken over as CEO of Berkshire Hathaway (BRK) since January of this year. Berkshire Hathaway announced that it has resumed stock buybacks, marking the first since May 2024.

In regulatory filings, Berkshire Hathaway disclosed that it began repurchasing A shares and B shares starting Wednesday (the 4th). On Wednesday, Abel spent approximately $15 million to buy 21 shares of Berkshire Hathaway, an amount equivalent to his after-tax salary of $25 million. Before this purchase, Abel held about $164.4 million worth of Berkshire Hathaway stock. He stated that as long as he remains at the helm, he will continue to pursue similar buyback actions and hopes to serve for up to 20 years.

Abel: Discussed Buybacks with Buffett

Abel said he has consulted Warren Buffett on buybacks and personal stock purchases, “Of course, I have discussed it with Buffett,” and emphasized that he “first evaluates the stock’s value, understands its intrinsic value, and consults Buffett on the timing of value realization and buybacks.”

He also mentioned that the company will not disclose the start date of buybacks, and during leadership transitions, “communication with shareholders, partners, and all stakeholders is very important.”

Market attention is on Abel’s relationship with Buffett since taking office. Abel revealed that Buffett still insists on working in the office every day. As long as he is in Omaha, the two almost communicate daily. Even when Abel is on business trips, he often proactively contacts Buffett to discuss market trends. “Even if not daily, we talk every few weeks.”

Buffett Is an Excellent Communicator

He continued, saying that succeeding Buffett as CEO is a significant pressure, especially when writing his first annual letter to shareholders, which made him more deeply understand Buffett’s long-standing communication style and influence. “Buffett is not only an outstanding investor but also an excellent communicator. Taking on such a role is not easy.”

He also joked that even though the responsibility of succession is significant, the most difficult task is writing the annual shareholder letter. Buffett simply responded, “The second letter won’t be any easier.”

Berkshire Hathaway’s operating profit fell nearly 30% last quarter, mainly due to weakness in the insurance business, which pressured the stock price. As of March 4, Berkshire Hathaway’s stock has declined over 3% this year, down 10% from its all-time high in May last year.

Financial Hot Talk

Middle East conflict threatens oil supply. Will oil prices break $100? Could this impact the global economy?