Berkshire Hathaway Spends Over $82 Billion on Its Own Stock Under New Leadership
Warren Buffett's successor at Berkshire Hathaway, Greg Abel, has continued and expanded a long-standing strategy of buying back the company’s own stock. Since mid-2018, Berkshire has spent over $82 billion repurchasing shares, reducing its outstanding share count by nearly 13%. This includes more than $78 billion in buybacks during Buffett's tenure from July 2018 to June 2024 and an additional $4.53 billion under Abel’s leadership in the first quarter of his stewardship. The move is part of a strategy that rewards long-term shareholders by increasing their ownership stake as shares are retired, while also potentially boosting earnings per share without issuing dividends. This approach has been enabled by revised buyback rules allowing purchases when Berkshire holds at least $30 billion in cash and equivalents and Buffett or Abel perceives the stock to be undervalued. While Alphabet remains a major investment under Abel’s management, it is not the largest single holding for Berkshire. The company's own shares have been its most significant acquisition over this period.
Topics: Alphabet (GOOGL) Berkshire Hathaway Greg Abel Stock Portfolio Management Warren Buffett