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Berkshire Hathaway Resumes Share Buybacks with $9.6 Billion Purchases
· Confirmed
In Short: Berkshire Hathaway has resumed share buybacks, purchasing $9.6 billion worth of its own stock.
Berkshire Hathaway has resumed share buybacks, purchasing $9.6 billion worth of its own stock, consistent with the company's long-standing policy of repurchasing shares only when management believes the stock is trading below its intrinsic value, according to 24/7 Wall St.
Buffett, who has led Berkshire Hathaway since 1965, has transitioned to an advisory role as Chairman Emeritus and will remain on the board to offer his judgment and perspective.
Greg Abel, who took over as CEO earlier this year, has been attempting to ease investor concerns by using the company’s $300 billion cash hoard to buy back more Berkshire shares.
The company's A share class has gained nearly 15% since the buybacks resumed, compared to a nearly 4% decline for the S&P 500 index, as reported by Moneycontrol.com.
Berkshire Hathaway's biggest year for buybacks was 2021, when it repurchased $27 billion of stock, according to Centraloregondaily.
Warren Buffett, in a letter to shareholders, said he has served Berkshire since 1965 and has stepped down as CEO on December 31, 2025.
Buffett's legacy at Berkshire Hathaway is marked by transforming the company from a struggling textile mill into a $1 trillion empire.
What this adds
Berkshire Hathaway's share buybacks and leadership transition are expected to continue to support the company's long-term growth and shareholder value.
Background
Berkshire Hathaway has resumed share buybacks, purchasing $9.6 billion worth of its own stock.
What's confirmed
- Warren Buffett has stepped down as chairman of Berkshire Hathaway, the company announced in a statement published early on Friday, having served in the role since 1970.
What's still developing
- The “Oracle of Omaha” left his successor, Greg Abel, with a very concentrated portfolio: almost 70% of Berkshire’s $381 billion portfolio is invested in just six stocks.
- The Berkshire Hathaway shares are trading roughly 5% off their all-time high, sitting on a record cash pile, with buybacks just resuming and a new CEO who’s eating his own cooking.
- Since 1965, shares of Warren Buffett’s conglomerate, Berkshire Hathaway ( BRK.A, BRK.B ), have delivered a compounded annual return of 19.9% —almost double that of the S&P 500 over the same period.
- The company aggressively increased share repurchases to $4.5 billion and transitioned to a net buyer of equities for the first time in 14 quarters, with Alphabet joining its core holdings.
- According to FactSet data, the market had previously expected Berkshire's net income to be around $10.6 billion, so the actual performance significantly exceeded expectations.
- REUTERS/Jeenah Moon A screen displays the Berkshire Hathaway Inc.
Sources
- Reuterslink
- 24/7 Wall St.link
- Business Chieflink
- Moneycontrol.comlink
- Fortunelink
- Investopedialink
- Peoplelink
- Tradingkeylink
- Centraloregondailylink
- 3Newsnowlink
- Abcnewslink
- NBC Newslink
- Journalrecordlink
- Northeasttimeslink
- WarpBeat — background on Berkshire Hathaway Steps Up Share Buybacks with $9.6 Billion Purchases link