The new leader of Berkshire Hathaway(BRKA)(BRKB) is bullish on the company -- and the stock.
While the financial media earlier this month focused primarily on the
news that the sprawling conglomerate has finally resumed repurchasing
its own stock, there was another crucial detail in the recent update
from Berkshire Hathaway CEO Greg Abel. It is a detail that arguably
speaks even louder than the company's corporate buybacks.
Abel is aggressively buying Berkshire stock for his own personal accounts.
In a massive vote of confidence, he announced that he will be
investing his entire after-tax salary in Berkshire Hathaway stock for
every year he serves as the company's chief executive officer.
When executives buy shares of their own company on the open market,
it usually sends a strong signal to investors. But committing an entire
after-tax salary to the stock takes that alignment of incentives to a
whole new level. It tells shareholders that the person calling the shots
is highly motivated to protect and grow the company's underlying value.
Image source: Getty Images.
A multi-million-dollar personal bet
After taking over as CEO from Warren Buffett at the beginning of
2026, Abel's annual cash salary increased to $25 million. But rather
than pocketing that substantial paycheck, Abel is using the post-tax
proceeds to build his stake in the conglomerate.
In early March, a regulatory filing confirmed that Abel purchased 21
Class A shares at about $730,000 each. The total transaction amounted to
about $15.3 million -- representing his entire after-tax salary. This
purchase brought his total holdings to 249 Class A shares, valued at
roughly $182 million at the time.
So, why is Abel making such a concentrated personal bet? It boils
down to a deep conviction in the assets he is now managing and a goal to
be as aligned with shareholders as possible.
"As CEO, I absolutely, obviously, believe in Berkshire, with the
transition from Warren, and I inherited a company that has an incredible
foundation," Abel explained during a recent interview.
He continued, emphasizing the long-term runway still ahead for the
business: "I believe in its future, the opportunities that exist there".
This wasn't a one-time gesture, either. Abel plans to make this a recurring annual event for as long as he leads the company.
"I'm committed to doing this every year going forward," he said.
"We'll file our 10-K, I'll write the letter. And after the 48-hour
cooling-off period, I'll purchase $15.3 million next year".
Corporate buybacks return
Abel's massive personal purchase coincided with another major
development for Berkshire Hathaway shareholders: the return of corporate
share repurchases.
On March 4, the company officially commenced repurchasing its own
shares under its long-standing buyback policy. It marks the first
repurchases of Berkshire shares since May 2024.
This combination of corporate share repurchases and heavy insider
buying provides a clear signal to investors: Greg thinks Berkshire stock
is a good long-term bet at its current price.
A closer look at the company's valuation shows why the math likely
makes sense to leadership. Berkshire's price-to-book value currently
sits at roughly 1.5. For a business with Berkshire's sprawling
collection of high-quality assets, this multiple arguably leaves room
for upside -- especially with repurchases resuming.
Built for an uncertain environment
Beyond the share repurchases and Abel's personal conviction, the underlying business remains a financial fortress.
Berkshire generated $44.5 billion in operating earnings for the full
year of 2025. Even more impressively, the company ended the year sitting
on a staggering cash reserve of more than $373 billion -- a huge sum
for a company with a market capitalization of about $1.06 trillion at the time of this writing.
This massive cash position allows the conglomerate to easily weather
economic storms and act opportunistically when the broader market
panics.
All of this makes Berkshire Hathaway an excellent, resilient business
to own -- especially right now. In a market environment marked by
rapidly evolving artificial intelligence (AI) narratives and macroeconomic uncertainty, owning a business built for durability makes sense.
If you are looking for a rock-solid stock to anchor your portfolio
during an uncertain period, I think following Abel's lead makes sense.
While no stock is without risks, Berkshire's diversified, cash-rich
business certainly has less risk than most -- and it has significant
optionality if it deploys its excess capital effectively in the coming
years.
It’s called ‘5 Stocks for Trying to Build Wealth After 50’. And it’s yours, free.
Of course, the decade ahead looks hazardous. What with rampant
inflation, a ‘cost of living crisis’ and war in Ukraine, knowing where
to invest has never been trickier. And yet, with so many shares below recent highs, there are also potential opportunities to strike.
That’s why now could be an ideal time to secure this valuable investment research.
Mark’s ‘Foolish’ analysts have scoured the markets low and high.
This special report reveals 5 of his favourite long-term ‘Buys’.
Please, don’t make any big decisions before seeing them.
Daniel Sparks
and his clients have positions in Berkshire Hathaway. The Motley Fool
has positions in and recommends Berkshire Hathaway. The Motley Fool has a
disclosure policy.
Image source: Getty Images.
