Warren Buffett May No Longer Be CEO, but He Was Still Consulted on This Stock Purchase in 2026

Warren Buffett may have stepped down as Berkshire Hathaway’s (BRKB 0.11%)(BRKA +0.00%) CEO at the end of 2025, but that doesn’t mean he’s not involved. As chairman, he still gets a say on some things, including one of the company’s latest stock purchases.

After a nearly two-year hiatus, the massive conglomerate recently resumed repurchasing its own shares. The move is a notable signal to investors, marking the first time the company has bought back stock since May 2024.

But what makes this resumption particularly interesting is the approval process behind it. In Berkshire’s 2025 annual report, the company said its repurchase program requires the CEO to consult with the chairman (Warren Buffett) before repurchasing shares. And in a recent interview with CNBC, Abel confirmed that he did exactly that, ensuring continuity in how the company evaluates its own stock.

The fact that Buffett, who remains chairman, was consulted on the decision should give investors confidence. It shows that the company’s rigorous valuation standards haven’t changed during the leadership transition – and it implies that even the Oracle of Omaha likes Berkshire stock at this price.

Warren Buffett. Image source: The Motley Fool.

A valuation that makes sense

Berkshire’s decision to repurchase shares essentially boils down to valuation. Management has long maintained that it only buys back stock when the price sits below a conservatively determined estimate of intrinsic value – and this recent action confirms the stock has finally crossed that threshold.

A closer look at the company’s underlying fundamentals shows why Abel and Buffett likely felt comfortable pulling the trigger.

Consider the company’s price-to-book value, which currently sits at roughly 1.5. For a business with Berkshire’s sprawling collection of high-quality assets, including a massive insurance operation, a major railroad, a diversified energy business, and a massive equities portfolio, this is a reasonable multiple that arguably even leaves a margin of safety for investors.

And the company’s underlying operating earnings profile looks good, too. In 2025, Berkshire generated robust operating earnings of $44.5 billion – well above its 5-year average of $37.5 billion.

At the stock’s current price, shares trade at roughly 24 times this figure, which is an attractive multiple for a company of this caliber.

When you factor in Berkshire’s massive cash hoard of more than $370 billion and an equity portfolio valued at roughly $300 billion, this valuation looks even more compelling. After backing out cash and investments, investors are paying an extraordinarily low price for the operating businesses themselves.

Given the company’s strong underlying assets and its unparalleled balance sheet, deploying capital to repurchase shares at this valuation makes perfect sense.

Optionality remains intact

Of course, some investors might worry that a return to share repurchases signals a lack of other investment opportunities. And with a cash pile of more than $370 billion, Berkshire certainly has plenty of capital to put to work.

But as Abel explained in his CNBC interview, repurchasing shares is not mutually exclusive from other capital allocation options. The company can buy back its own stock while still maintaining the flexibility to reinvest in its existing businesses, buy publicly traded equities, or make large-scale acquisitions.

Berkshire’s war chest is more than large enough to fund all of these priorities simultaneously if the right opportunities arise.

Expand

NYSE: BRKB

Berkshire Hathaway

Today’s Change

(-0.11%) $-0.57

Current Price

$493.57

Key Data Points

Market Cap

$1.1T

Day’s Range

$489.25 - $493.80

52wk Range

$455.19 - $542.07

Volume

3.8M

Avg Vol

4.9M

Gross Margin

23.63%

Ultimately, the resumption of share repurchases is a positive development for shareholders. It shows that Berkshire’s new leadership is willing to act when the price is right, and it confirms that even Buffett likes the stock at its current price.

For investors looking for a durable business with a meaningful margin of safety, Berkshire Hathaway stock remains a compelling place to park capital. I think buying shares alongside the company’s own repurchase program is a smart move for long-term investors.

Sure, there are risks. If investors decide Berkshire no longer deserves to trade at a premium to book value in a post-Buffett era, for instance, shares could underperform from here. But I personally believe Buffett has built something that could produce exceptional results over the long haul.