Berkshire Hathaway Resumes Share Buybacks as Greg Abel Signals Continuity

Berkshire Hathaway resumed share repurchases on Thursday, March 5, 2026, marking the first time the company has bought back its own stock in nearly two years. The move, authorized by new CEO Greg Abel, signals confidence in the company’s valuation and a continuation of Warren Buffett’s capital allocation strategy.

Abel’s First Major Move

The resumption of buybacks comes after a pause since May 2024. Abel, who succeeded Warren Buffett as CEO at the start of 2026, disclosed that he personally purchased $15.3 million in Berkshire shares, representing the majority of his expected after-tax earnings of $25 million for the year. He committed to continuing this practice annually, demonstrating “absolute alignment” with Berkshire shareholders.

Transparency in Leadership Transition

Unlike previous repurchase programs, Berkshire proactively announced the resumption of buybacks, citing a desire for transparency during the leadership transition. The company stated in a filing with the U.S. Securities and Exchange Commission that it was disclosing the commencement of repurchases “in the interest of transparency with our leadership transition.” Traditionally, buybacks are revealed within quarterly financial statements.

Buyback Strategy Remains Consistent

Abel emphasized that the buyback policy remains consistent with Berkshire’s long-standing approach: repurchasing shares only when the market price is below the company’s conservatively determined intrinsic value. He declined to specify the number of shares the company intends to repurchase. The decision to initiate buybacks requires Abel’s approval after consultation with Chairman Warren Buffett.

Record Cash Position

Berkshire Hathaway holds a substantial cash pile, reaching $373.3 billion at the end of 2025. This “dry powder” allows the company to capitalize on investment opportunities and repurchase shares without compromising its financial strength. Abel has stated that the cash position is strategic and does not indicate a retreat from investing.

Market Reaction

Berkshire shares climbed 2% on Thursday following the announcement, but remain down for the year to date.

Investor Perspective

Bill Stone, chief investment officer at Berkshire investor Glenview Trust, noted that Buffett previously initiated buybacks when the stock traded between 1.4, and 1.5 times above its book value in 2024. With the stock’s recent performance, a repurchase resumption was anticipated. Still, Stone also pointed out that Abel’s judgment on intrinsic value may differ from a simple price-to-book ratio analysis.