Berkshire Hathaway’s new chief executive says the company will keep buying more of one stock as long as it remains undervalued.
In a new Squawk Box interview, Greg Abel, who succeeded Warren Buffett as Berkshire’s CEO, says he’s buying and will continue to buy shares of Berkshire Hathaway (BRK.B) while its price is below a certain metric.
“As long as our intrinsic value exceeds the market value, again, conservatively determined, we’ll continue to repurchase. But the one thing we have never done is we don’t disclose the amount, the timing, or the computation. But we did feel this time it was important because of the changes in leadership.”
Abel explains that Berkshire’s investment strategy revolves around three core capital allocation buckets.
“We always look at effectively three buckets when we’re allocating our capital. We have our existing businesses, deploying capital back into those, both for their current operations and incremental opportunities. That really exists every day, and we’re constantly challenging ourselves…
And when we’re looking at companies, do we acquire whole companies also? And then there’s the, do we acquire equities, other equities? And as we’ve highlighted, we always look at that as very similar to buying 100% or 2%.
And then the third bucket where we deploy our capital is share repurchases. Each of those, with the amount of capital we have, can be done independently. So when we’re purchasing our shares, it’s not taking away from any of the other decisions.”
As of Thursday’s close, BRK.B is trading at $500.40, up 2.65% on the day.
Berkshire Hathaway has built a cash stockpile to the tune of $373 billion as of the end of 2025. The firm’s latest 13F filing shows that Apple (AAPL) remains its largest holding, valued at $61.961 billion.
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.