Berkshire Hathaway's Abel Embraces Stock Buybacks with $4.2 Billion Bet

Greg Abel, the CEO of Berkshire Hathaway, has taken bold steps to continue the company's legacy of success. In his first year as CEO, he restarted the stock buyback machine that was a hallmark of Warren Buffett's tenure. The conglomerate spent $4.2 billion on its own shares during the second quarter of 2026, bringing the total since Abel took over to nearly $5.5 billion.

Under Buffett, Berkshire Hathaway became a behemoth with a $1 trillion market capitalization, driven by a diverse portfolio of subsidiaries and investments. The company's performance far surpassed that of the S&P 500 during Buffett's 60-year tenure, delivering a compound annual return of 19.7%. This success was largely due to Buffett's focus on acquiring companies with strong growth potential, steady profits, and experienced management teams.

One notable example is Coca-Cola, which Berkshire acquired in the late 1980s and continues to hold today. The company has returned billions of dollars to shareholders through dividends and stock buybacks, contributing significantly to Berkshire's returns. Buffett also famously invested heavily in Apple, acquiring a $38 billion stake that was worth over $170 billion by early 2024.

Abel's focus on stock buybacks is seen as an effort to maintain the momentum of Berkshire Hathaway under his leadership. With over $365 billion in cash and cash equivalents, the company has ample resources to continue investing in itself and its shareholders.