There's a Nassim Taleb quote that should be tattooed on the forehead of every CEO on the planet: "Never ask anyone for their opinion. Ask them what's in their portfolio."
Greg Abel, the guy who inherited Warren Buffett's throne at Berkshire Hathaway, seems to have read the book. On Thursday, the Omaha conglomerate revealed it had started buying back its own shares — for the first time since Q2 2024 — and, separately, Abel disclosed he'd purchased $15 million in company stock. Out of his own pocket. The amount equals his entire annual after-tax salary.
And he promised to do it every year as long as he's CEO.
The $373 Billion Elephant in the Room
Ever since Berkshire stopped repurchasing shares in mid-2024, investors had been scratching their heads — and losing their patience — staring at that mountain of $373.3 billion in cash just sitting there. It's an obscene number. You could buy Nike, Starbucks, and McDonald's and still have change left over for lunch.
The question everyone was asking: "Does Abel have the guts to put that money to work, or is he going to sit on it like a dragon guarding its gold?"
The answer came on two simultaneous fronts.
First, Berkshire began repurchasing Class A and Class B shares on Wednesday. Company policy allows this when the CEO — after consulting with the board chairman, who remains Buffett himself at 95 years old — believes the price is below intrinsic value. In other words: Abel looked at the market, looked at Berkshire's real value, called Warren, and said "it's cheap."
"I absolutely had a conversation with Warren," Abel told CNBC's Squawk Box. "I looked at the value, formed my view on intrinsic value, and consulted with Warren on the value and the timing."
Second, he put his own skin in the game. The $15 million bumps his personal stake in Berkshire, which was already around $164 million according to FactSet. He's no Buffett — who holds 37.5% of Class A shares and roughly 99.5% of his personal net worth in the company — but it's a signal that speaks louder than any shareholder letter ever could.
Why Now?
Berkshire shares had dropped 3% on the year and 10% from their all-time high last May. The week before, the company reported a nearly 30% decline in operating earnings for Q4, dragged down by weakness in the insurance business. The market got jittery.
It was the perfect opening.
Abel explained that normally the company wouldn't disclose the start of buybacks. But with the leadership transition — he took over in January, when Buffett finally passed the baton — he felt it was important to communicate it to shareholders. Translated from corporate-speak: "I need to show I'm not just a caretaker. I'm in charge and I have conviction."
Class B shares rose 1% in the trading session after the announcement. Nothing spectacular, but the market got the message.
"That's So Berkshire"
When Abel was asked what Buffett and the board thought of his plan to reinvest his entire salary in company stock, his answer was priceless:
"They were both very supportive. They said: 'That's so Berkshire.'"
And it really is. This is the culture Buffett built over 60 years: money on the table, total alignment with shareholders, zero corporate bullshit. If the CEO won't buy shares in his own company, why the hell should you?
Abel also said he expects to be at the helm for 20 years. The guy is 62. He's planning to step down at 82. No shortage of ambition there.
Continuity or Stagnation?
Some investors were disappointed that Abel didn't make bolder moves right out of the gate — a big acquisition, an audacious bet. His annual letter over the weekend was basically: "I'm going to keep doing everything the way Warren did, forever."
Is that prudent conservatism or a lack of personality? Depends on your lens.
But here's what I'd say: in a world full of CEOs who talk a great game on earnings calls while quietly dumping shares behind the scenes, a guy who takes his entire salary and plows it right back into the company at least deserves the benefit of the doubt.
Skin in the game. Simple as that.
The question that lingers: with $373 billion in cash and an increasingly volatile market, how long before Abel makes the first big move that's genuinely his own — and not just Buffett's shadow?
