Greg Abel makes his first big moves as Berkshire Hathaway CEO. Is it time to buy back in?
CNBC • • business
Key Points:
- Berkshire Hathaway has resumed share buybacks, and new CEO Greg Abel purchased about $15 million in stock, committing to use his after-tax salary for annual share purchases, signaling confidence in the company's future.
- Analysts view these moves positively for shareholder alignment but believe they do not significantly alter the investment case or valuation of the stock, which faces earnings challenges in units like Geico and Berkshire Hathaway Reinsurance.
- Despite the buybacks and Abel's stock purchase, Berkshire's shares remain down nearly 2% year-to-date and about 9% below their May record high, pressured by a nearly 30% decline in fourth-quarter operating earnings largely due to insurance business weakness.
- Some investors appreciate the continuity of Berkshire's owner-operator
