Berkshire Hathaway’s new CEO, Greg Abel, has authorized stock buybacks for the first time in over two years, a move that aligns with Warren Buffett’s long-term strategy despite initial appearances to the contrary. Abel confirmed in a recent interview with CNBC that he consulted with Buffett before initiating the repurchase program, ensuring that the decision remained consistent with the legacy of the conglomerate’s long-time leader.

Buffett’s Stance on Buybacks

Warren Buffett did not authorize the repurchase of a single share of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) during his last six quarters as CEO of the conglomerate. This period spanned the second half of 2024 and all of 2025. Buffett’s rationale was that he did not believe Berkshire’s share price was below its intrinsic value during that time.

Unlike most publicly traded companies, Berkshire Hathaway does not require the board of directors to authorize a stock buyback. The CEO can initiate such a repurchase when he believes the repurchase price is below Berkshire’s intrinsic value. This authority was granted to Abel by the board in 2023, but only after consultation with the chairman of the board, Warren Buffett.

Abel has taken advantage of this authority, initiating a stock buyback program in early 2026. The move has raised questions about whether he is deviating from Buffett’s playbook. However, Buffett himself has given his blessing to the repurchase of Berkshire Hathaway shares, according to Abel’s statements.

Abel’s Confidence in Berkshire’s Value

Abel’s decision to authorize buybacks appears to be rooted in his confidence that Berkshire’s intrinsic value has increased. This belief is supported by his comments in the annual shareholder letter, where he expressed optimism about the future performance of Berkshire’s businesses, particularly BNSF (Burlington Northern Santa Fe Railway).

Abel wrote that he expects BNSF’s operating margins to improve significantly over the next few years. His confidence in this improvement may have influenced his view of Berkshire’s intrinsic value. This perspective is further reinforced by the fact that Berkshire’s share price has risen above levels seen during much of Buffett’s tenure as CEO.

Abel also noted that the current market dynamics, including the performance of key sectors like railroads and insurance, suggest that Berkshire’s businesses are now worth more than they were in previous economic conditions. This view aligns with the idea that intrinsic value is not static and can fluctuate based on external factors such as interest rates, inflation, and industry trends.

Abel’s Personal Investment in Berkshire

Abel’s commitment to Berkshire is not just financial—it is personal. In the first quarter of 2026, he purchased 21 Berkshire Class A shares for approximately $14.6 million. This amount represents the after-tax value of his $25 million annual salary. Abel now owns 249 Class A shares, valued at roughly $187 million.

According to Abel, he plans to continue investing all of his after-tax salary in Berkshire Hathaway as long as he remains CEO. He expressed a desire to remain in his role for the next two decades, which he said is a key factor in his decision to authorize the buyback program.

Abel emphasized his commitment to aligning with shareholders in a recent CNBC interview. He stated, “Absolute alignment with our shareholders, our partners, our owners, is critical. I already have some shares, but the goal was to continue to demonstrate alignment with them.” This personal investment reinforces his belief in Berkshire’s long-term prospects and highlights his adherence to Buffett’s principles.

Abel also recalled in his annual shareholder letter the words of Buffett’s longtime business partner, Charlie Munger, who said, “Greg will keep the culture” intact at Berkshire Hathaway. Abel said this statement meant a great deal to him and has guided his leadership style.

Buffett himself continues to serve as chairman of Berkshire, working five days a week. Abel has maintained the culture Buffett instilled at the company, and he has also upheld the playbook that Buffett laid out for the future of Berkshire Hathaway.

Abel’s actions—consulting Buffett, authorizing buybacks, and investing personally in Berkshire—clearly indicate that he is not breaking from Buffett’s playbook. Instead, he is continuing the legacy Buffett has built over decades.