New Berkshire Hathaway CEO Greg Abel Just Broke This 21-Month Streak Started by Warren Buffett

Warren Buffett sat at the helm of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) for over 60 years before turning the reins over to Greg Abel at the start of 2026. Abel indicated that not much will change at the company under his leadership in his first letter to shareholders. Still, Abel will be a very different CEO than Buffett, as he's more versed in business operations than in investment decisions.

The last few years of Buffett's tenure at Berkshire were marked by his decision to sell significant stakes in some of the company's biggest marketable equity positions, adding to a growing cash pile. For a while, Buffett used some of that cash to buy back shares of Berkshire from the open market under the company's share repurchase program. But even that stopped in June 2024 after 24 straight quarters of share repurchases. It's been 21 months since Buffett's final share repurchase for Berkshire Hathaway.

But Abel just put an end to that streak. An SEC filing revealed that the company has resumed share repurchases. In fact, Abel believes the stock presents such good value right now that he's put his own money on the line as well.

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One of the best opportunities in 21 months

Shares of Berkshire Hathaway experienced a notable downtrend in value last summer following Buffett's announcement that he'd be stepping down as CEO at the end of 2025. That led to significant multiple compression, pushing Berkshire's price-to-book ratio to about 1.5 at the bottom of the sell-off. That's a multiple the stock had rarely seen since Buffett's last share repurchase, but it apparently wasn't cheap enough for him to pull the trigger on it.

Shares dipped near the start of 2026 as well, pushing the stock's price-to-book ratio to a low of 1.42, well below the multiple Buffett paid in May 2024. That said, that valuation is based on data compiled in Berkshire's 2025 annual report, and the value may not have been clear at the start of the year.

BRK.A Price to Book Value data by YCharts

Berkshire released its full-year results at the end of February, showing a continued increase in its cash pile, reaching $373 billion. Its equity portfolio was worth just under $300 billion at the end of the year. It's worth about $307 billion today. The two account for the vast majority of Berkshire's book value.

Abel took the opportunity to start buying back shares on March 4. That follows a decline in shares due to disappointing fourth-quarter operating results and the market's reaction to the Iran war. Considering Berkshire's core operations are relatively insulated from foreign affairs, a decline in Berkshire shares could be an opportunity. That said, Berkshire's equity portfolio is full of many companies with large international operations.

Berkshire stock traded for a price-to-book ratio of about 1.46 on March 4. That ratio could be lower if adjusted for the real-time value of Berkshire's stock portfolio and cash pile. As mentioned, the portfolio's value at the end of 2025 has increased since the start of the year, and Berkshire continues to produce positive cash flow from operations. As a result, the current valuation presents a compelling opportunity to buy Berkshire shares based solely on the company's book value and historical trading.

Is it actually a buying opportunity?

Just because a stock trades at a good value doesn't mean it's a great buy. While the majority of Berkshire's book value stems from its liquid assets, investors should also consider the company's operating results to determine whether it deserves a higher or lower multiple these days than in the recent past.

In the company's core insurance business, the California wildfires at the start of 2025 were cancelled out by a quiet hurricane season on the Atlantic coast. No hurricanes made landfall this year, Abel pointed out. As a result, 2025 showed solid insurance results despite some lumpiness. Premiums written at GEICO, notably, continued to climb, and losses came in around the same percentage as last year.

Berkshire's railroad business, Burlington Northern Santa Fe (BNSF), showed improvements in operating margin as it decreased the time shipments spent idle at terminals. But with a 34.5% operating margin in 2025, up from 32% in 2024, the railroad still operates with worse margins than its biggest competitors. Union Pacific, for example, had an operating margin of 40% last year.

The energy business produced results in line with the prior year; however, management warned that recent legislation and regulatory changes, including the "big, beautiful bill," could negatively impact its results going forward. The catch-all category for the company's owned-and-operated businesses, "manufacturing, service, and retailing," saw a slight increase in its revenue and improved operating margin.

So the results were a bit mixed last year. But investors should consider whether Berkshire's operations can improve overall going forward.

To that end, its insurance business benefits from the ability to underwrite more risk than just about anyone else. Its railroad business is showing marked improvement. The energy business is seeing growing demand despite regulatory challenges. As a result, it may be a great time to start buying the stock.

Abel certainly thinks so. Not only did he put some of Berkshire's cash to work buying shares, but he also bought $15 million worth of the stock for his personal trust. Berkshire still looks like a great company, and it's trading at a fair price.

Adam Levy has positions in Union Pacific. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Union Pacific. The Motley Fool has a disclosure policy.