Berkshire Hathaway CEO Greg Abel Loads Up On $15M In Stock, BRK Resumes Share Buybacks

• During an interview with CNBC, Abel stated that he will continue to purchase Berkshire shares every year with his salary.
• He added that he talks to his predecessor and chairman of the board, Warren Buffett, saying that the company commenced the share repurchase after the two consulted about the matter.
• In a letter to shareholders last month, Abel stated that the company is committed to strengthening the legacy built by Buffett and Charlie Munger.

Berkshire Hathaway Inc. CEO Greg Abel has purchased the company’s Class A stock worth $15 million, according to the latest filing with the U.S. Securities and Exchange Commission (SEC).

In a separate filing, the company also announced that it had begun repurchasing its own stock. Berkshire stated that it can buy its Class A or Class B stock at any time it believes the “repurchase price is below our intrinsic value.”

Berkshire Hathaway’s Class B shares were up nearly 2% in Thursday morning’s trade. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory at the time of writing.

Abel Says He Will Continue To Purchase Berkshire Shares Every Year

During an interview with CNBC, Abel stated that he will continue to purchase Berkshire shares every year with his salary.

“I already have some shares, but the goal was to continue to demonstrate alignment with them. ... As the CEO, I absolutely, obviously, believe in Berkshire, with the transition from Warren, and I inherited a company that has an incredible foundation,” Abel said during the interview.

He added that he talks to his predecessor and chairman of the board, Warren Buffett, saying that the company commenced the share repurchase after the two consulted about the matter.

Explaining how he arrived at the decision to begin repurchasing shares, Abel said that they look at the economic prospects of each of the companies in Berkshire over the long term.

“We have to view this as value… that we’re creating value for our shareholders long term,” he added.

Abel’s Letter To Shareholders

Abel penned his first letter to Berkshire shareholders last month, stating that the company’s values “remain unchanged” and that this will continue to be the case in perpetuity.

“These purchases allow shareholders to own an incrementally larger piece of Berkshire’s businesses, without deploying any additional capital of their own,” Abel said, adding that share repurchases are another important capital allocation option for Berkshire.

He added that the company is committed to strengthening the legacy built by Buffett and Charlie Munger. Abel added that Munger’s comment in 2021 that “Greg will keep the culture” of the company is a reminder that this is Berkshire’s “most treasured asset.”

BRK.B stock is down 1% year-to-date and 0.3% over the past 12 months.

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