Berkshire Hathaway (NYSE: BRK.A, BRK.B) CEO Greg Abel filed a Form 4 filing on Thursday, March 5, revealing a massive new position in the company’s own stock.
Specifically, Abel has personally purchased $15 million worth of the conglomerate’s shares, which is roughly equal to his after-tax annual salary.
In fact, Abel now intends to use his full salary each year to buy Berkshire shares going forward, for at least 20 years, as he told CNBC.
As this is the first instance of insider share repurchases since 2024, the news sent Berkshire’s Class B shares up about 1% in early trading.
“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 on Squawk Box.
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The first Berkshire Hathaway insider trade since 2024
The Omaha firm last repurchased shares in the second quarter of 2024. Under Berkshire’s policy, buybacks may occur whenever the chief executive, after consulting with chairman Warren Buffett, determines the market price is below the company’s intrinsic value.
“I absolutely talked to Warren. So how I approached it was, obviously, looking at the value, having a view of intrinsic value, and then consulted with Warren relative to the value and the timing,” the CEO added.
Since assuming the top role, Abel has emphasized continuity with Buffett’s investment philosophy. For instance, in his first annual shareholder letter released over the weekend, he called Buffett “arguably the greatest investor of all time,” claiming his vision still guides the company.
“Those beliefs fostered Berkshire’s culture and values that continue to guide the company today, enabling it to endure through market cycles, disruptions, and change. Our durability comes from knowing who we are and how we operate,” he wrote.
Prior to the latest purchase, Abel held roughly $164.4 million in Berkshire stock, according to the CNBC interview. Buffett himself currently owns about 37.5% of Berkshire’s Class A shares.
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