Berkshire Hathaway CEO Greg Abel on resuming buyback program: I absolutely talked to Warren
Speakers
Becky Quick — Anchor
— CNBC Squawk Box host
Joe Kernen — Anchor
— CNBC Squawk Box co-anchor
Summary
- Berkshire Hathaway has officially recommenced its share repurchase program for the first time since May 2020, signaling that leadership views the stock as undervalued.
- CEO Greg Abel confirmed he consulted with Warren Buffett, and both agree that the company's "intrinsic value exceeds the current market value" based on conservative calculations.
- The company holds approximately $373 billion in cash, and Abel indicated that buying back Berkshire stock currently offers a better return profile than acquiring whole companies or other public equities.
- This specific disclosure is a one-time event to reassure shareholders during the leadership transition; future buybacks will occur without immediate announcements, following standard reporting cycles.
Trade Ideas
Greg Abel announces that Berkshire has recommenced purchasing shares because "intrinsic value... exceeds our market price." He explicitly confirms, "I absolutely talked to Warren," and they agree the stock is undervalued relative to its economic prospects. Berkshire holds a massive cash pile ($373B). By choosing to deploy capital into its own stock rather than acquisitions or the broader S&P 500, leadership is signaling that BRK.B is the most attractive asset in their universe. This creates a "Buffett Put" (or now "Abel Put")—a psychological and financial floor under the stock price driven by consistent corporate buying. LONG. This is the ultimate insider buy signal from the world's most disciplined capital allocators. A broad market collapse could drag the stock down despite the buyback; poor performance in underlying subsidiaries (insurance/rail/energy) could erode intrinsic value.
