Deep Dive – Berkshire Hathaway in a New Era: 100 Days of Greg Abel Ahead of the AGM
Ahead of the shareholders' meeting of the American investment holding company Berkshire Hathaway (New York: BRK-B) this coming Saturday, we take stock of the first 100 days of CEO Greg Abel. The common thread: a chief executive who is more hands-on than his predecessor, moves faster on capital allocation and does not shy away from parting with what does not work, while carefully safeguarding Buffett's culture and core philosophy. We also take a deeper look at a promising new partnership Berkshire has entered into in Japan.
Saturday marks the first meeting at which Greg Abel, as CEO, will answer shareholders' questions. Warren Buffett will still be present as Chairman of the Board of Directors, but will no longer take the stage.
In early March we wrote extensively, in our deep dive "Buffett successor Greg Abel immediately shows skin in the game", about Abel's first shareholder letter, the reinvestment of his entire annual salary into the company's own shares, and the resumption of the share buyback programme. With a substantial private purchase of Berkshire shares worth USD 15.3 million, Abel demonstrated considerable skin in the game. The company itself also backed up its words with action, as Berkshire Hathaway has once again actively resumed its share buyback programme — an important signal that the board (including Buffett) and Abel believe the intrinsic value currently exceeds the prevailing share price.
Michael Gielkens
This article was translated automatically from Dutch using AI. In case of any difference, the Dutch original prevails. Read the original in Dutch.
