Abel may buy back stock more aggressively
Berkshire Hathaway's share buyback strategy under Greg Abel may occur closer to intrinsic value than under Warren Buffett, utilizing its massive cash pile.
The argument
The guest noted that recent buybacks occurred at around $486 per share, suggesting Abel might be comfortable repurchasing shares up to 95% of intrinsic value (estimated at $475 to $510) compared to Buffett's historical 90% threshold. This shift could allow Berkshire to deploy its massive cash reserves more actively to support the stock.
The thesis, stress-tested
✓ What validates it
- ✓10-Q filings showing sustained or accelerated share repurchases when the stock trades near the upper end of the $475-$510 range
▸ Risks discussed
- ▸Repurchasing shares too close to intrinsic value, which reduces the compounding benefit of the buybacks
Hear it yourself
"It was a question of I think towards the end about it was about succession or, you know, and or or who's who's his number two? And he was very clear that he was in charge. I mean, it was like, there should be one leader. You know, I'm the guy. You know, I I thought he I thought he displayed, I mean, a a great grasp of Berkshire's businesses. You know, they played you know, they didn't have a movie, but they played, you know, that classic Warren testifying in front of congress, with the Salomon Brothers scandal. You know, he called it Berkshire's anthem. So, you know, I I really felt like there was this great balance of I mean, Greg don't forget."
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