Berkshire Hathaway 's resumption of share buybacks and a personal stock purchase by new CEO Greg Abel were viewed positively by analysts, though most said the moves don't meaningfully change the investment case for the name. Berkshire disclosed in filings this week that it resumed repurchasing its own shares . Abel, who took over the helm at the start of 2026, purchased roughly $15 million worth of the company's stock, while committing to use all of his after-tax salary to buy shares every year. "I view both the resumed share repurchases and Greg's commitment to annual buying as positives," said Meyer Shields, an analyst at Keefe, Bruyette & Woods. "But they don't change the earnings challenges at units like Geico or Berkshire Hathaway Reinsurance." If buybacks exceed expectations, they could provide some earnings-per-share accretion, Shields said. Still, he maintains a sell-equivalent rating on Berkshire's stock. Shares of Berkshire rose 2.7% Thursday following the disclosures. The stock remains down nearly 2% this year and roughly 9% below its record high reached in May, as of Friday afternoon. Shares came under pressure earlier this week after the firm reported a near 30% decline in its operating earnings for the fourth quarter, due in large part to weakness in the insurance business. BRK.A YTD mountain Berkshire Hathaway year to date Gregg Warren, an analyst at Morningstar, said Abel's purchase signals confidence in Berkshire's long-term prospects but isn't enough on its own to shift the firm's valuation of the stock. "He should own more shares than he does right now," Warren said. "It shows he's invested in the firm's future.... Neither action is going to alter our valuation or view of the shares, which are driven by company fundamentals." Berkshire last repurchased stock in the second quarter of 2024, and some investors have since been pressing the company to deploy its $373.3 billion cash pile. Some investors said the latest moves reinforce continuity with Berkshire's culture of management ownership. Abel's purchase increases his personal stake at a time when some shareholders have questioned whether Buffett's successor has comparable "skin in the game." "It's great to see more economic alignment with shareholders after the announcement from Greg about future stock purchases," said Macrae Sykes, a portfolio manager at Gabelli Funds. "Even though there is a migration from a founder-led company, the conglomerate is still maintaining the strong owner-operator ethos." Still, the stronger alignment between management and shareholders hasn't necessarily changed views on the stock's valuation. Cathy Seifert, an analyst at CFRA Research, said Berkshire's shares already reflect much of the company's underlying strength. "I think the resumption of share buybacks is positive," said Seifert. "At this juncture my view is that Berkshire's Class B shares are fairly valued, particularly given the tepid financial results."
