Warren Buffett's Successor, Greg Abel, Just Bought $4.5 Billion of the Oracle of Omaha's Favorite Stock (No, Not Alphabet!)

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Berkshire’s Big Buyback Signals Confidence Amid Succession

Greg Abel reverses Berkshire Hathaway's sell-off streak with a $4.5 billion buyback, boosting its stakes in Alphabet.

Greg Abel’s decision to end a 14-quarter sell-off streak at Berkshire Hathaway with the largest buyback in five years is striking. It shows a vote of confidence not just in Berkshire itself but in the broader market of quality, long-term businesses. The $4.5 billion spent on repurchasing Berkshire shares suggests management believes the current price undervalues their intrinsic worth. Meanwhile, tripling the stake in Alphabet signals faith in disruptive tech beyond typical value plays. For South African investors, this speaks to the merit of backing shares with robust business moats. While we don’t have a Berkshire-listed counter in JSE terms, the rand/US dollar exchange rate should be watched closely. Dollar strength can squeeze earnings for exported commodities but may indirectly pressure local shares sensitive to global liquidity. The risk? A sudden shift in interest rates or tech sector shocks that could derail the narrative of stable growth and safe buybacks. this is just our opinion and not financial advice